iShares U.S. Financial Services ETF IYG is probably on the radar for investors seeking momentum. The fund just hit a 52-week high and has moved up 37.13% from its 52-week low price of $65.98/share.
Are more gains in store for this ETF? Let us 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.
IYG in Focus
The underlying Dow Jones U.S. Financial Services Index measures the performance of the financial services sector of the U.S. equity market. The product charges 39 bps in annual fees (see: all Financials ETFs).
Why the Move?
The financial sector has been an area to watch lately. The recent 25-bps rate cut and the possibility of further reductions later in the year are likely to be a key tailwind for the sector and the fund, as these could lower capital costs for banks.
More Gains Ahead?
Currently, IYG has a Zacks ETF Rank #2 (Buy) and a High risk outlook. It might continue its strong performance in the near term, with a positive weighted alpha of 26.31 (as per Barchart.com), which gives cues of a further rally.
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iShares U.S. Financial Services ETF (IYG): ETF Research ReportsThis article originally published on Zacks Investment Research (zacks.com).
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