For investors seeking momentum, iShares Core S&P U.S. Growth ETF IUSG is probably on the radar. The fund just hit a 52-week high and is up 35% from its 52-week low of $108.91 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:
IUSG in Focus
iShares Core S&P U.S. Growth ETF provides low-cost 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, communication, consumer discretionary and financials. iShares Core S&P U.S. Growth ETF 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 return of the risk-on trading. The S&P 500 Index closed at its highest levels since February, fueled by growing optimism over a fragile U.S.-brokered ceasefire between Israel and Iran that has ignited hopes of a more enduring resolution to regional hostilities. In particular, growth stocks tend to outperform in a trending market (i.e., a market characterized by a prolonged uptrend).
More Gains Ahead?
Currently, IUSG has a Zacks ETF Rank #3 (Hold) with a Medium risk outlook. So, it is hard to get a handle on its future returns one way or the other. However, many spaces 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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iShares Core S&P U.S. Growth ETF (IUSG): ETF Research ReportsThis article originally published on Zacks Investment Research (zacks.com).
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