For investors seeking momentum, iShares Morningstar Large-Cap ETF is probably on radar. The fund just hit a 52-week high and is up more than 30% from its 52-week low price of $133.57 per 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:
JKD in Focus
This ETF provides exposure to large, established U.S. companies. It has a well-diversified portfolio with key holdings in information technology, industrials, healthcare and financials. The fund charges 20 bps in annual fees (read: all the Large Cap Blend ETFs here).
Why the Move?
The broader U.S. market has been an area to watch lately given the new record highs for the major bourses. The rally was driven by a better-than-expected earnings season, easing policies, trade deal optimism and a solid jobs report. The bullish trend is likely to continue in November given solid momentum and a historical outperformance. If history is any guide, November has been among the best months for markets over the past decade. According to a CNBC analysis of Kensho, all the three major indices have traded positively 80% of the time in November since 2009. Also, November marks the start of the best six months for the Dow Jones and the S&P 500, and the best eight-month period for the Nasdaq, according to Almanac, citing “fourth-quarter cash inflows from institutions.”
More Gains Ahead?
Currently, JKD has a Zacks ETF Rank #2 (Buy) with a Medium risk outlook, suggesting continued outperformance in the months ahead. Further, 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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