For investors seeking momentum, Schwab U.S. Large-Cap Growth ETF SCHG is probably on radar now. The fund just hit a 52-week high and is up roughly 28.6% from its 52-week low price of $45.45/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:
SCHG in Focus
SCHG provides exposure to the growth stocks of the large cap segment with key holdings in information technology, consumer discretionary, healthcare and industrials. However, it has a significant concentration on the top firm – Apple AAPL – at 6.9% while other firms hold less than 3.2% of assets. The product charges 4 basis points in fees (see: all the Large Cap ETFs here).
Why the Move?
The growth space of the broad U.S. stock market has been an area to watch lately given the stellar performance of the stocks and improving domestic fundamentals. Though Trump’s protectionist and anti-trade policies are flaring up volatility, U.S. bourses are hitting new highs. In such a trending market (i.e. a market characterized by a prolonged uptrend), growth stocks tend to outperform. Additionally, solid manufacturing and industrial activities across the globe are providing a boost to these stocks.
More Gains Ahead?
Currently, SCHG has a Zacks ETF Rank of 3 or ‘Hold’ rating with a Medium risk outlook. Therefore, it is hard to get a handle on its future returns in one way or the other. However, 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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