For investors seeking momentum, Invesco Dynamic Software ETF (PSJ - Free Report) ) is probably on radar now. The fund just hit a 52-week high, and is up more than 46% from its 52-week low price of $60.14/share.
But are more gains in store for this ETF? Let’s take a quick look at the fund and the near-term outlook on it to get a better idea on where it might be headed:
PSJ in Focus
It tracks the Dynamic Software Intellidex Index. There are 30 holdings in the basket of the fund, with Intuit (INTU - Free Report) occupying the top spot with 5.02% weight. The focus is on growth stocks in the large-cap (32%), mid-cap (27%) and small-cap (24%) segment of the market. The product charges 63 bps in fees per year (see: all the Technology ETFs here).
Why the Move?
The technology corner of the broad U.S. stock market has been an area to watch lately given the increasing demand for cutting-edge technology. Added to the strength are rounds of upbeat data, signaling improving economic growth and providing a solid boost to economically sensitive growth sectors like technology, which typically perform well in a maturing economic cycle.
More Gains Ahead?
Currently, PSJ has a Zacks ETF Rank #2 (Buy) with a High risk outlook, suggesting that the outperformance could continue in the months ahead. Further, many of the segments that make up this ETF have a strong Zacks Industry Rank. So, there is definitely still some promise for those who want to ride on this surging ETF a little longer.
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