For investors seeking momentum, iShares Morningstar Large-Cap Growth ETF (JKE - Free Report) is probably on radar now. The fund just hit a 52-week high and is up about 26.5% from its 52-week low price of $147.58/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:
JKE in Focus
JKE provides exposure to large U.S. companies whose earnings are expected to grow at an above-average rate relative to the market. It has the largest holdings in information technology while healthcare, consumer discretionary and communication round off the next three spots. The fund charges 25 basis points in annual fees (see: all the Large Cap Growth ETFs here).
Why the Move?
The growth segment of the large-cap U.S. space has been an area to watch lately given the spring fever. This is because economic activity across all sectors is likely to step up in spring, injecting fresh optimism in the economy and a boost to the stock market. Against this backdrop, growth investing has more upside potential as it is basically a momentum play and tends to outperform in a trending market (a market characterized by a prolonged uptrend).
More Gains Ahead?
Currently, JKE has a Zacks ETF Rank #3 (Hold) with a Medium risk outlook. Therefore, it is hard to get a handle on its future returns one way or the other. However, many of the segments that make up this ETF have a strong Zacks Industry Rank. So, there is definitely some promise for those who want to ride this surging ETF a little further.
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