For investors seeking momentum, SPDR Dow Jones Industrial Average ETF DIA is probably on radar. The fund just hit a 52-week high, and is up 23% from its 52-week low price of $298.59 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:

SPDR Dow Jones Industrial Average ETF is one of the largest and most-popular ETFs in the large-cap space. It holds 30 blue-chip stocks with key holdings in information technology, healthcare, industrials, financials, and consumer discretionary that account for a double-digit exposure each. It charges investors 16 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 as the Dow Jones has been hitting a series of record highs to start the New Year. While the technology sector has taken a beating, cyclical sectors are outperforming buoyed by rising yields, which indicates investors’ optimism in the economy. SPDR Dow Jones Industrial Average ETF has significant exposure to the cyclical sectors and are thus outperforming.

More Gains Ahead?

Currently, DIA has a Zacks ETF Rank #2 (Buy) with a Medium risk outlook, suggesting that the outperformance could continue in the months ahead. However, 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.

Infrastructure Stock Boom to Sweep America

A massive push to rebuild the crumbling U.S. infrastructure will soon be underway. It’s bipartisan, urgent, and inevitable. Trillions will be spent. Fortunes will be made.

The only question is “Will you get into the right stocks early when their growth potential is greatest?”

Zacks has released a Special Report to help you do just that, and today it’s free. Discover 7 special companies that look to gain the most from construction and repair to roads, bridges, and buildings, plus cargo hauling and energy transformation on an almost unimaginable scale.

Download FREE: How to Profit from Trillions on Spending for Infrastructure >>

Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
 
SPDR Dow Jones Industrial Average ETF (DIA): ETF Research Reports
 
To read this article on Zacks.com click here.
 
Zacks Investment Research

Copyright 2022 Entrepreneur.com Inc., All rights reserved

This article originally appeared on entrepreneur.com