Technology ETF (XLK) Hits New 52-Week High
For investors seeking momentum, Technology Select Sector SPDR Fund XLK is probably on radar now. The fund just hit a 52-week high, and is up roughly 35.2% from its 52-week low price of $57.57/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:
XLK in Focus
This fund provides exposure to the technology segment of the broad U.S. stock market. It has key holdings in software, IT services, technology hardware storage & peripherals, as well as semiconductors & semiconductor equipment. The product charges 13 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 trade enthusiasm and encouraging industry trends. The emergence of cutting-edge technology such as cloud computing, big data, Internet of Things, wearables, VR headsets, drones, virtual reality, artificial intelligence and machine has been fueling growth in the space. The deployment of 5G (fifth-generation) technology — the next wireless revolution — is creating further opportunities. The wave of mergers and acquisitions is also providing further impetus to the space Papolar.com
More Gains Ahead?
Currently, XLK 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 still some promise for those who want to ride on this surging ETF a little longer.
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