Investors looking for ETFs with rising momentum should begin to consider the SPDR Technology Select Sector Fund (XLK). This product just hit a new 52-week high of $49.93 today, and is now up 30.54% from its 52-week low price of $38.25 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 XLK’s Rise
As mentioned earlier, XLK has now gained 30.54% from its 52-week low, which was hit back on February 11, 2016. The fund has now returned 1.80% over the past month, 5.45% over the past three months, and 9.81% in the past six months. Those returns compare to the benchmark S&P 500 index’s 0.56%, 6.72%, and 5.65% returns in the same periods, respectively. It’s become abundantly clear that tech-focused names are outperforming their non-tech counterparts in 2017.
XLK 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
SPDR Technology Select Sector Fund is a Equity-focused product issued by State Street Global Advisors. Its expense ratio of 0.14% makes it the #5 cheapest ETF among 52 total funds in the Technology Equities ETFs category.
XLK currently boasts $14.12B in assets under management (AUM), placing it #1 of 52 ETFs in its category, and #44 of 1920 total ETFs in the U.S. exchange traded universe.
The investment objective of the SPDR Technology Select Sector Fund ETF is to provide investment results that correspond generally to the price and yield performance of the S&P Technology Select Sector Index. This index is heavily weighted toward mega cap tech names like Apple, Facebook, Microsoft, and Google, all of which are at or near their own yearly highs.
XLK SMART Grade: More Gains Ahead?
A SMART Grade of A suggests extremely strong future price growth potential, so it’s reasonable to expect even more gains ahead. With so much momentum behind it, a reasonable expense ratio, and plenty of future growth potential, XLF receives our highest recommendation.
For more information about this ETF, including full ratings, news, data, and more, please visit XLK’s ticker page.
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