We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Image: Bigstock
Growth ETF (ILCG) Hits New 52-Week High
For investors seeking momentum, iShares Morningstar Growth ETF (ILCG - Free Report) is probably on radar. The fund just hit a 52-week high and is up 36.7% from its 52-week low price of $50.16 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:
ILCG in Focus
This fund offers exposure to 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, communication, consumer discretionary and healthcare. The fund charges 4 basis points in annual fees (see: all the All-Cap Growth ETFs here).
Why the Move?
The growth corner of the broad U.S. stock market has been an area to watch lately given that the S&P 500 is hitting a series of new highs. Pfizer’s PFE full-vaccine approval couple with continued earnings momentum has rekindled investors’ appetite for riskier assets. In particular, growth stocks tend to outperform in a trending market (i.e. a market characterized by a prolonged uptrend).
More Gains Ahead?
Currently, ILCG has a Zacks ETF Rank #2 (Buy), 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.