For investors seeking momentum, iShares Russell Top 200 Growth ETF IWY is probably on radar. The fund just hit a 52-week high and is up 32.9% from its 52-week low of $114.66 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 of where it might be headed:
IWY in Focus
iShares Russell Top 200 Growth ETF provides exposure to large U.S. companies whose earnings are expected to grow above average relative to the market. It has key holdings in information technology and consumer discretionary. IWY charges 20 bps in annual fees (see: all the Large-Cap Growth ETFs here).
Why the Move?
The large-cap growth corner of the broad investing world has been an area to watch lately, given the renewed appeal for riskier assets. The superb rally in the mega-cap tech stocks and hopes of an imminent end to rate rises have bolstered investors’ confidence. In particular, growth stocks are leading the rally as these tend to outperform in a trending market (i.e. a market characterized by a prolonged uptrend).
More Gains Ahead?
Currently, IWY has a Zacks ETF Rank #3 (Hold) with a Medium risk outlook. Therefore, it is hard to get a handle on its future returns one way or the other. However, many 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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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
