Credit: Shutterstock photoFor investors seeking momentum, SPDR S&P Software & Services ETF(XSW) is probably on radar now. The fund just hit a 52-week high, and is up about 44% from its 52-week low price of $64.39/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:
XSW in Focus
It tracks the S&P Software & Services Select Industry Index. There are 127 holdings in the fund's basket. It targets the space of Application Software (37.1%), Data Processing and Outsourced Services (27.1%), System Software (17.9%), IT consulting and other Services (15%) and Home Entertainment Software (2.9%). The product charges 35 bps in fees per year (see: all the Technology ETFs here ).
Why the Move?
The technology corner of the broad U.S. stock market has been an area to watch lately given the increasing demand for cutting-edge technology. Added to the strength are rounds of upbeat data, signaling improving economic growth and providing a solid boost to economically sensitive growth sectors like technology, which typically perform well in a maturing economic cycle.
More Gains Ahead?
Currently, XSW has a Zacks ETF Rank #2 (Buy) with a High risk outlook, suggesting that the outperformance could continue in the months ahead. So, there is definitely still some promise for those who want to ride on this surging ETF a little longer.
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SPDR-SP SOF&SER (XSW): ETF Research Reports
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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.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
