For those looking to cash in on momentum investing opportunities, SPDR Dow Jones Industrial Average ETF (DIA - Free Report) is probably on radar now. The fund has just hit a 52-week high, up more than 18% from its 52-week low price of $226.28/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:
DIA in Focus
It tracks the Dow Jones Industrial Average which comprises 30 blue-chip U.S. stocks. It majorly targets the Industrials segment (22.6%), with Information Technology (18.9%), Financials (14.7%), Healthcare (13.4%) and Consumer Discretionary (11.7%) being the other double-digit weight holders (see: all the Large-Cap ETFs here).
Why the Move?
The American economy is on an expansion mode buoyed by upbeat economic data. Industrial Production (a measure of output at factories, mines and utilities) rose 0.4% in August — marking the third consecutive month of increase. The manufacturing sector, which represents nearly 75% of industrial production, is on a momentum spree since early 2017, thanks to rising energy prices and historic tax cuts.
More Gains Ahead?
Currently, DIA has Zacks ETF Rank #2 (Buy) with a Medium risk outlook, suggesting that the outperformance could continue in the months ahead. So, there is definitely some promise for those who want to ride on this surging ETF a little longer.
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