Back to top

Image: Bigstock

Mega Cap Growth ETF (MGK) Hits New 52-Week High

Read MoreHide Full Article

For investors seeking momentum, Vanguard Mega Cap Growth ETF (MGK - Free Report) is probably on radar now. The fund just hit a 52-week high and is up nearly 22.6% from its 52-week low price of $99.11/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:

MGK in Focus

This ETF offers diversified exposure to the largest growth stocks in the U.S. market. It holds 131 securities in its basket, with none accounting for more than 8.5% of total assets. It has key holdings in information technology, consumer services, financials, industrials and healthcare. The fund charges 7 basis points in annual fees (see: all the Large Cap ETFs here).

Why the Move?

The mega-cap growth space of the broad U.S. stock market has been an area to watch lately given improving domestic and international fundamentals, and a compelling valuation. The rounds of upbeat economic data reflect strengthening economy and thus bolstered confidence in the growth. Although President Donald Trump's protectionist trade policies is undermining trade and weakening confidence in the global economy, renewed optimism in information technology and forecasts of double-digit, second-quarter earnings growth are acting as catalysts.

More Gains Ahead?

MGK has a Zacks ETF Rank #2 (Buy) with a Medium risk outlook, suggesting that the outperformance could continue in the months ahead. Further, many of the segments that make up this ETF have a strong Zacks Industry Rank, so there is definitely still some promise for those who want to ride on this surging ETF a little longer.

Want key ETF info delivered straight to your inbox?

Zacks’ free Fund Newsletter will brief you on top news and analysis, as well as top-performing ETFs, each week. Get it free >>


See More Zacks Research for These Tickers


Normally $25 each - click below to receive one report FREE:


Vanguard Mega Cap Growth ETF (MGK) - free report >>

Published in