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Large-Cap Growth ETF (SPYG) Hits New 52-Week High

Sweta Killa
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For investors seeking momentum, SPDR Portfolio S&P 500 Growth ETF SPYG is probably on radar now. The fund just hit a 52-week high and is up roughly 24.3% from its 52-week low price of $29.33/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:

SPYG in Focus

SPYG provides exposure to the growth stocks of the large-cap segment, with key holdings in information technology, which accounts for around 43% of the portfolio. It has a significant concentration on FANG stocks and charges investors just 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 high hopes of Q2 earnings growth and historic tax cuts. Rounds of upbeat economic data reflect a strengthening economy and are thus raising confidence in growth amid looming trade tensions. In particular, growth stocks are leading the rally, as these tend to outperform in a trending market (i.e. a market characterized by a prolonged uptrend).

More Gains Ahead?

Currently, SPYG has a Zacks ETF Rank #1 (Strong Buy) with a Medium risk outlook, suggesting that the outperformance could continue 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.

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