For investors seeking momentum, iShares Expanded Tech Sector ETF (IGM - Free Report) is probably on radar now. The fund just hit a 52-week high, and is up roughly 38% from its 52-week low price of $159.30/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:
IGM in Focus
This fund offers broad exposure to the technology sector, and technology-related companies in the communication services and consumer discretionary sectors. It has key holdings in interactive media & services, systems software, data processing & outsourced services, semiconductors, and internet & direct marketing retail. The product charges 47 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 that the tech-laden Nasdaq hit new milestone. The emergence of cutting-edge technology such as cloud computing, big data, Internet of Things, wearables, VR headsets, drones, virtual reality, artificial intelligence and machine has been fueling growth in the space. The deployment of 5G (fifth-generation) technology — the next wireless revolution — is creating further opportunities. The wave of mergers and acquisitions is also providing further impetus to the space.
More Gains Ahead?
Currently, IGM has a Zacks ETF Rank #2 (Buy) with a Medium 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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