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Small-Cap Growth ETF (PXSG) Hits New 52-Week High

Sanghamitra Saha
Sector ETF report for IEZ

For investors seeking momentum, Invesco Russell 2000 Pure Growth ETF PXSG is probably on the radar now. The fund just hit a 52-week high and is up nearly 38% from its 52-week low price of $28.57/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.

PXSG in Focus

The fund measures the performance of the U.S. small-cap growth companies. Health Insurance Innovations, Tandem Diabetes Care and Pacira Pharmaceuticals are the top three holdings of the fund. The product charges 39 bps in fees (see all small-cap ETFs here).

Why the Move? 

Investors should note that the Fed is on track to raise rates faster as long as the U.S. economy continues to do well. Small-cap stocks are likely to do better in a rising rate environment since these are tied more to domestic activities and are thus not hurt in a rising dollar environment (which is a likely outcome). Also, with the GDP growth data coming in upbeat, investors have every reason to play this small-cap ETF.

More Gains Ahead?

The fund has a Zacks Rank #2 (Buy). Plus, it seems that the fund will perform decently in the near term given a positive weighted alpha of 37.90.

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PWRSH-F P SM GR (PXSG): ETF Research Reports
 
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