For investors looking for momentum, Schwab U.S. Large-Cap ETF SCHX is probably a suitable pick. The fund just hit a 52-week high and is up 44.9% from its 52-week low price of $71.06/share.

Let’s take a look at the fund and its near-term outlook to gain an insight into where it might be headed:

SCHX in Focus

This fund seeks to track as closely as possible, before fees and expenses, the total return of the Dow Jones U.S. Large-Cap Total Stock Market Index. It has AUM of $30.09 billion and charges 3 basis points in annual fees.

Why the Move?

The U.S. economy is appearing to be on the path of recovery from the pandemic-led slowdown. Markedly, accelerated vaccine distribution, strong fiscal stimulus support and the reopening of non-essential businesses are expected to fasten the economic recovery pace. Notably, the central bank has raised its economic growth outlook considering the vaccine and stimulus optimism and it also expects higher inflation this year. Furthermore, certain economic data releases are pointing toward economic recovery. This is making funds like SCHX an attractive investment option.

More Gains Ahead?

The fund has a Zacks ETF Rank #2 (Buy). It seems like the fund will remain strong, with a positive weighted alpha of 37.10, which gives cues of further rally.

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Schwab U.S. LargeCap ETF (SCHX): ETF Research Reports
 
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