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Large Cap Growth ETF (SCHG) Hits New 52-Week High

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For investors seeking momentum, Schwab U.S. Large-Cap Growth ETF (SCHG - Free Report) is probably on radar. The fund just hit a 52-week high and is up roughly 35% from its 52-week low price of $64.30/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:

SCHG in Focus

SCHG provides exposure to the growth stocks of the large-cap segment with key holdings in information technology, consumer discretionary, communication services and healthcare. However, it has a significant concentration on the top two firms with more than 7% each while other firms hold less than 5.4% of assets. The product charges 4 basis points in fees (see: all the Large Cap Growth ETFs here).

Why the Move?

The growth space of the broad U.S. stock market has been an area to watch lately, given that the S&P 500 hit new all-time highs. The latest rally can be attributed to easing monetary policy and trade deal optimism. Additionally, better-than-expected Q3 corporate earnings also lifted investor sentiment. In particular, growth stocks are leading the rally as these tend to outperform in a trending market (i.e. a market characterized by a prolonged uptrend).

More Gains Ahead?

Currently, SCHG 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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