For investors seeking momentum, iShares Russell Top 200 Growth ETF IWY is probably on the radar. The fund just hit a 52-week high and is up 59.11% from its 52-week low price of $180.65/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
The underlying Russell Top 200 Growth Index measures the performance of the largest capitalization growth sector of the U.S. equity market. It is a subset of the Russell Top 200 Index issuers with relatively higher price-to-book ratios and higher forecasted growth. The product charges 20 bps in annual fees (See: All Large Cap Growth ETFs).
Why the Move?
The growth segment of the broader market is becoming an attractive investment option. Softer U.S. inflation data, an upbeat earnings season and rising expectations for more Fed rate cuts have together lifted market sentiment and fueled optimism among investors. Additionally, renewed hopes for a trade deal between China and the United States is are a tailwind. Growth funds typically excel during market uptrends, providing exposure to stocks with high growth potential.
More Gains Ahead?
Currently, IWY has a Zacks ETF Rank #1 (Strong Buy) with a Medium risk outlook. However, it might continue its strong performance in the near term, with a positive weighted alpha of 35.09 (as per Barchart.com), which gives cues of a further rally.
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This article originally published on Zacks Investment Research (zacks.com).
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
