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Technology ETF (XSW) Hits New 52-Week High

Zacks Equity Research
Investors need to pay close attention to Cronos (CRON) stock based on the movements in the options market lately.

For investors seeking momentum, SPDR S&P Software & Services ETF (XSW) is probably on radar now. The fund just hit a 52-week high, and is up about 44% from its 52-week low price of $64.39/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:

XSW in Focus

It tracks the S&P Software & Services Select Industry Index. There are 127 holdings in the fund’s basket. It targets the space of Application Software (37.1%), Data Processing and Outsourced Services (27.1%), System Software (17.9%), IT consulting and other Services (15%) and Home Entertainment Software (2.9%). The product charges 35 bps in fees per year (see: all the Technology ETFs here).

Why the Move?

The technology corner of the broad U.S. stock market has been an area to watch lately given the increasing demand for cutting-edge technology. Added to the strength are rounds of upbeat data, signaling improving economic growth and providing a solid boost to economically sensitive growth sectors like technology, which typically perform well in a maturing economic cycle.

More Gains Ahead?

Currently, XSW has a Zacks ETF Rank #2 (Buy) with a High risk outlook, suggesting that the outperformance could continue in the months ahead. So, there is definitely still some promise for those who want to ride on this surging ETF a little longer.

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SPDR-SP SOF&SER (XSW): ETF Research Reports
 
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