Investors seeking momentum may have SPDR S&P 500 ETF Trust (SPY - Free Report) on radar now. The fund recently hit a new 52-week high. Shares of SPY are up approximately 24.4% from their 52-week low of $267.83/share.
But could there be more gains ahead for this ETF? Let’s take a look at the fund and the near-term outlook to get a better idea of where it might be headed.
SPY in Focus
The S&P 500 Index is composed of five hundred selected stocks, all of which are listed on national stock exchanges and span over 25 separate industry groups. SPY charges investors 9 basis points in fee per year (see all Style Box - Large Cap Blend ETFs here).
Why the Move?
The S&P 500 hit a record high on Feb 5 buoyed by the launch of Chinese policy stimuli. This raised hopes that the threat from the coronavirus outbreak can be contained soon. Plus, the upbeat U.S. manufacturing data for the month of January bodes well for the index.
More Gains Ahead?
Currently, SPY has a Zacks ETF Rank #2 (Buy) with a Medium risk outlook. The fund has a positive weighted alpha of 24.00. So, there is a decent outlook ahead for those who want to ride this surging ETF a little further.
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