For investors seeking momentum, SPDR Dow Jones Industrial Average ETF (DIA – Free Report) is probably on radar. The fund just hit a 52-week high, and is up 25% from its 52-week low price of $216.97 per 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:
DIA in Focus
DIA is one of the largest and most-popular ETFs in the large-cap space. It holds 30 blue chip stocks with key holdings in industrials, information technology, financials, healthcare and consumer discretionary that account for double-digit exposure each. It charges investors 17 basis points a year in fees (see: all the Large Cap Value ETFs here).
Why the Move?
The large-cap segment of the broad U.S. stock market has been an area to watch lately given that the Dow topped 27,000 for the first time. The Fed in its latest testimony bolstered the case for monetary easing policies, citing that slower business investments across the United States and lingering global growth uncertainties might slow down domestic growth. Hopes of a near-term rate cut has led to a skyrocketing stock market.
More Gains Ahead?
Currently, DIA has a Zacks ETF Rank #1 (Strong Buy) with a Medium risk outlook, suggesting that the outperformance could continue in the months ahead. However, many of the segments that make up this ETF have a strong Zacks Industry Rank. So, there is definitely some promise for those who want to ride this surging ETF a little further.
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