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Mega-Cap ETF (XLG) Hits New 52-Week High
For investors seeking momentum, Invesco S&P 500 Top 50 ETF (XLG - Free Report) is probably on radar. The fund just hit a 52-week high, and is up about 39% from its 52-week low price of $230.19/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:
XLG in Focus
This fund offers exposure to mega-cap securities with key holdings in information technology, communication services, healthcare and consumer discretionary. The product charges investors 20 basis points in fees (see: all the Large Cap ETF Blend here).
Why the Move?
The mega-cap space of the broad U.S. stock market has been an area to watch lately given the skyrocketing stock market. Inflation fears have subsided and the economy is witnessing a speedy recovery with millions of Americans fully vaccinated and pandemic restrictions being rolled back. Additionally, the bouts of latest data are bolstering investors’ confidence, driving the stocks higher.
More Gains Ahead?
Currently, XLG has a Zacks ETF Rank #2 (Buy) with a Medium risk outlook, suggesting continued outperformance 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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