For investors seeking momentum, SPDR S&P MIDCAP 400 ETF Trust (MDY - Free Report) is probably on radar now. The fund just hit a 52-week high and is up 29.3% from its 52-week low price of $284.45/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:
MDY in Focus
MDY provides exposure to the mid-cap securities of the broad U.S. stock market with key holdings in industrials, financials, information technology, real estate and healthcare. The fund charges 24 basis points in annual fees (see: all the Mid Cap ETFs here).
Why the Move?
The mid-cap space of the broad U.S. stock market has been an area to watch lately given that this corner is also showing strong momentum and is trying to catch up with the major indexes. The rally was buoyed by a series of all-time highs for the large-cap brethren on trade deal optimism and easy money policies. However, the still unresolved trade dispute and geopolitical concerns continued to weigh on the market. In this scenario, mid-cap funds offer the best of both worlds — growth and stability — when compared to small-cap and large-cap counterparts.
More Gains Ahead?
Currently, MDY has a Zacks ETF Rank #3 (Hold). 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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