Investors looking for ETFs with rising momentum should begin to consider the iShares S&P Global Technology Sector Index Fund (IXN). This product just hit a new 52-week high of $114.05 today, and is now up 33.74% from its 52-week low price of $85.28 per share.
Will this ETF continue its string of recent wins? Let’s take a closer look at the fund, its recent gains, the category it resides in, and its ratings and outlook to get a sense of whether its momentum is sustainable or not.
Inside IXN’s Rise
As mentioned earlier, IXN has now gained 33.74% from its 52-week low, which was hit back on February 11, 2016. The fund has now returned 2.79% over the past month, 3.17% over the past three months, and 9.52% in the past six months. Those returns compare quite favorably to the benchmark S&P 500 index’s 0.18%, 6.20%, and 5.58% returns in the same periods, respectively.
IXN currently sits above its 10-day, 20-day, 50-day, 100-day, and 200-day moving averages (MAs), which from a technical standpoint suggests a very strong possibility that the recent gains can continue. That’s because the shares have no short-term overhead resistance to bump up against.
A Look Under The Hood
iShares S&P Global Technology Sector Index Fund is an Equity-focused product issued by BlackRock. Its expense ratio of 0.47% makes it the #21 cheapest ETF among 52 total funds in the Technology Equities ETFs category.
IXN currently boasts $1.07B in assets under management (AUM), placing it #7 of 52 ETFs in its category, and #278 of 1922 total ETFs in the U.S. exchange traded universe.
The investment objective of the iShares S&P Global Technology Index Fund ETF is to track the investment results of an index composed of global equities in the technology sector. The top holdings of the underlying index, although it’s a global focused index, look a lot like what you’d expect from a U.S. fund. In fact, IXM has huge exposure to Apple (12%), Microsoft (9.3%), Facebook (5.6%), and Alphabet (4.66%, 4.54%). Next up is Samsung (3.36%), which at #6 is the first international name represented and the only one in the top ten holdings.
So while IXN provides some exposure to international tech stocks, it’s really the U.S. holdings that are providing the lion’s share of the gains.
IXN SMART Grade: More Gains Ahead?
A SMART Grade of A suggests excellent future price growth potential, so it’s reasonable to expect even more gains ahead. IXN thus receives our highest recommendation.
For more information about this ETF, including full ratings, news, data, and more, please visit IXN’s ticker page.
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