Large-Cap Growth ETF (JKE) Hits New 52-Week High

For investors seeking momentum, iShares Morningstar Large-Cap Growth ETF JKE is probably on radar. The fund just hit a 52-week high and is up 74.7% from its 52-week low of $158 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 on where it might be headed.

JKE in Focus

This fund has exposure to large U.S. companies whose earnings are expected to grow at an above-average rate relative to the market. It has key holdings in information technology while communication, consumer discretionary and health care round off the next three spots. It charges 25 basis points in annual fees (see: all the Large Cap Growth ETFs here).

Why the Move?

The growth space of the broad U.S. stock market has been an area to watch lately given that the S&P 500 and the Nasdaq Composite Index have been hitting a series of highs. The latest rally came on the back of new developments in the coronavirus vaccine and the solid resurgence in technology stocks. 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 #1 (Strong Buy) with a Medium risk outlook, suggesting that the outperformance could continue in the months ahead. Further, many of the 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.