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For investors seeking momentum, Vanguard Russell 2000 Growth ETF (VTWG - Free Report) is probably on radar. The fund just hit a 52-week high and is up 103% from its 52-week low of $94.30 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.
VTWG in Focus
This fund targets the growth segment of the small-cap space and measures the performance of those Russell 2000 companies with higher price/book ratios and higher predicted and historical growth rates. It has key holdings in healthcare, technology, industrials and consumer discretionary. The ETF charges 15 basis points in annual fees (see: all the Small Cap Growth ETFs here).
Why the Move?
The growth space of the U.S. small-cap stocks has been an area to watch lately given the vaccine optimism, which has pushed most of the indices to new highs. A vaccine is being viewed as “a beginning to the end” of the coronavirus pandemic, thereby bolstering investors’ confidence in economic growth. In fact, small caps, which are closely tied to the economy, outperformed large caps by a wide margin in November to wrap their best monthly performance on record. In particular, growth stocks are leading as these tend to outperform in a trending market (i.e. a market characterized by a prolonged uptrend).
More Gains Ahead?
Currently, VTWG has a Zacks ETF Rank #2 (Buy) with a High 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 some promise for those who want to ride this surging ETF a little further.
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Small-Cap Growth ETF (VTWG) Hits New 52-Week High
For investors seeking momentum, Vanguard Russell 2000 Growth ETF (VTWG - Free Report) is probably on radar. The fund just hit a 52-week high and is up 103% from its 52-week low of $94.30 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.
VTWG in Focus
This fund targets the growth segment of the small-cap space and measures the performance of those Russell 2000 companies with higher price/book ratios and higher predicted and historical growth rates. It has key holdings in healthcare, technology, industrials and consumer discretionary. The ETF charges 15 basis points in annual fees (see: all the Small Cap Growth ETFs here).
Why the Move?
The growth space of the U.S. small-cap stocks has been an area to watch lately given the vaccine optimism, which has pushed most of the indices to new highs. A vaccine is being viewed as “a beginning to the end” of the coronavirus pandemic, thereby bolstering investors’ confidence in economic growth. In fact, small caps, which are closely tied to the economy, outperformed large caps by a wide margin in November to wrap their best monthly performance on record. In particular, growth stocks are leading as these tend to outperform in a trending market (i.e. a market characterized by a prolonged uptrend).
More Gains Ahead?
Currently, VTWG has a Zacks ETF Rank #2 (Buy) with a High 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 some promise for those who want to ride this surging ETF a little further.
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 >>