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Consumer Discretionary ETF (IYC) Hits New 52-Week High

Sweta Killa
Investors need to pay close attention to Esperion (ESPR) stock based on the movements in the options market lately.

For investors seeking momentum, iShares U.S. Consumer Services ETF IYC is probably a good bet now. The fund just hit a 52-week high and is up about 29% from its 52-week low price of $163.35/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:

IYC in Focus    

IYC provides targeted exposure to domestic consumer services’ stocks. It has a large-cap focus with key holdings in retailing, media and consumer services segments. The fund charges 43 basis points in annual fees from investors and is largely concentrated on Amazon AMZN, which accounts for 21.6% of the portfolio (see: all the Consumer Discretionary ETFs here).

Why the Move?

The consumer discretionary sector has been an area to watch lately given a rising rate environment and series of upbeat economic data. Higher interest rates usually indicate a healthy economy, which in turn leads to greater consumer power. An improving economy coupled with higher consumer confidence is making the consumer discretionary sector tempting to investors amid higher yields.

More Gains Ahead?

IYC has a Zacks ETF Rank #2 (Buy) with a Medium risk outlook, suggesting that the outperformance could continue for months. Further, many of the segments that make up this ETF have a strong Zacks Industry Rank, so there is definitely still some promise for those who want to ride on this surging ETF a little longer.

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