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Industrials ETF (IYJ) Hits New 52-Week High

Sanghamitra Saha

For investors seeking momentum, iShares U.S. Industrials ETF IYJ is probably on radar. The fund just hit a 52-week high and is up about 34.5% from its 52-week low price of $119.58/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:

IYJ in Focus

The underlying Dow Jones U.S. Industrials Index measures the performance of the industrial sector of the U.S. equity market. It includes: construction & materials, aerospace & defense, general industrials, electronic & electrical equipment, industrial engineering, industrial transportation & support services. The fund charges investors 43 basis points a year in fees (see: all Industrials ETFs here).

Why the Move?

Though it slipped from the previous month, the ISM Manufacturing PMI for June in the United States beat expectations. In a separate study, IHS Markit reported that U.S. manufacturing PMI rose 50.6 in June from 50.1 in May. Such improvements in the U.S. manufacturing sector was favorable for the fund. Plus, possibilities of a Fed rate cut in the coming days are supporting this fund, which targets capital-intensive and debt-dependent sector like industrials. 

More Gains Ahead?

Currently, IYJ has a Zacks ETF Rank #2 (Buy) with a Medium risk outlook. So, there is definitely still some promise for those who want to ride on this ETF a little longer.

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iShares U.S. Industrials ETF (IYJ): ETF Research Reports
 
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