For investors seeking momentum, iShares Expanded Tech-Software Sector ETF IGV is probably on radar. The fund just hit a 52-week high and is up 47.5% from its 52-week low price of $235.41/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:
IGV in Focus
iShares Expanded Tech-Software Sector ETF provides exposure to software companies in the technology and communication services sectors by tracking the S&P North American Expanded Technology Software Index. It charges 40 bps in annual fees. (see: all the Technology ETFs here).
Why the Move?
The technology sector has been an area to watch lately, given the soaring stock prices. In particular, the software giant Microsoft MSFT saw an astounding rally, reaching new highs driven by the market optimism around the tech giant’s artificial intelligence prospects. Microsoft occupies the third position in the IGV portfolio with 8.4% of assets.
More Gains Ahead?
Currently, IGV has a Zacks ETF Rank #1 (Strong Buy) with a High risk outlook, suggesting that the outperformance could continue in the months ahead. However, many spaces 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.
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