For investors seeking momentum, iShares Core Dividend Growth ETF (DGRO - Free Report) is probably on radar. The fund just hit a 52-week high and is up about 32.6% from its 52-week low price of $31.04/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:
DGRO in Focus
The underlying Morningstar US Dividend Growth Index is composed of U.S. equities with a history of consistently growing dividends. The fund charges 8 bps in fees (see all Style Box - Large Cap Value ETFs here).
Why the Move?
Though Wall Street is hitting highs on Fed rate cut and trade deal optimism, the road ahead is not devoid of concerns. Still-unresolved U.S.-China trade tensions, global growth worries and Brexit uncertainty could derail the market momentum any time. This is why investors are still betting big on quality exposure like dividend growth ETF like DGRO. Investors should note that dividend growth stocks in particular are high quality companies with solid balance sheets and stable cash flows.
More Gains Ahead?
Currently, the fund has a positive weighted alpha of 15.80. So, there is definitely some promise for those who want to ride on this ETF a little longer.
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