For investors seeking momentum, SPDR Portfolio S&P 500 Growth ETF SPYG is probably on the radar. The fund just hit a 52-week high and is up 43.6% from its 52-week low of $68.65 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:
SPYG in Focus
SPDR Portfolio S&P 500 Growth ETF offers exposure to stocks that exhibit the strongest growth characteristics based on sales growth, earnings change to price ratio and momentum. It is heavy on the information technology sector, communication services, consumer discretionary and financials. SPYG charges 4 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 surge in the stock market. The S&P 500 is making new record highs lately, propelled by a combination of solid corporate earnings, a softer inflation backdrop and rising hopes of interest rate cuts by the Federal Reserve. In particular, growth stocks tend to outperform in a trending market (i.e., a market characterized by a prolonged uptrend).
More Gains Ahead?
Currently, SPYG has a Zacks ETF Rank #1 (Strong Buy) with a Medium risk outlook, suggesting that the outperformance could continue in the months ahead. Many sectors 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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SPDR Portfolio S&P 500 Growth ETF (SPYG): ETF Research ReportsThis article originally published on Zacks Investment Research (zacks.com).
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