Large-Cap ETF (SPLG) Hits New 52-Week High

SPLG

For investors seeking momentum, SPDR Portfolio S&P 500 ETF (SPLG - Free Report) is probably on the radar. The fund just hit a 52-week high and is up 39% from its 52-week low of $48.13 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 of where it might be headed:

SPLG in Focus

SPDR Portfolio S&P 500 ETF offers exposure to the large-cap segment of the broader equity market. It has key holdings in information technology, financials, healthcare and consumer discretionary. SPDR Portfolio S&P 500 ETF charges just 2 bps in annual fees (see: all the Large-Cap Blend ETFs here).

Why the Move?

The large-cap corner of the broad investing world has been an area to watch lately, given the renewed rally in the stock market. The Federal Reserve kicked off the new rate cycle era, infusing strong optimism into the stock market. It slashed interest rates by 50 bps after holding it at a 23-year high for 14 consecutive months since July 2023. This marked the first rate cut since 2020 to address slowing economic growth. The S&P 500 and the Dow Jones hit new all-time highs and topped the 5,700 and 42,000 milestones, respectively, for the first time.

More Gains Ahead?

Currently, SPLG has a Zacks ETF Rank #1 (Strong Buy), suggesting that the outperformance could continue in the months ahead. Many spaces 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.