For investors seeking momentum, iShares Core S&P U.S. Growth ETF (IUSG - Free Report) is probably on radar. The fund just hit a 52-week high and is up around 26.3% from its 52-week low price of $57.56/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:
IUSG in Focus
This ETF offers exposure to a broad range of U.S. growth stocks, whose earnings are expected to grow at an above-average rate relative to the market. It has key holdings in information technology while consumer discretionary, communication and health care round off the next three spots. It is one of the low-cost choice in the large-cap space, charging 4 basis points in annual fees (see: all the All-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 major bourses are scaling new highs. In particular, growth stocks are momentum plays and tend to outperform in a trending market (a market characterized by a prolonged uptrend). These refer to high-quality stocks that are likely to witness revenue and earnings increase at a faster rate than the industry average. These stocks harness their momentum in earnings to create a positive bias in the market, resulting in rocketing share prices.
More Gains Ahead?
Currently, IUSG has a Zacks ETF Rank #1 (Strong Buy) with a Medium risk outlook, suggesting that the outperformance could continue in the months ahead. Further, many of the segments that make up this ETF have a strong Zacks Industry Rank, so there is definitely still some promise for those who want to ride on this surging ETF a little longer.
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