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Mega Cap ETF (MGC) Hits a New 52-Week High

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For investors looking for momentum, Vanguard Mega Cap ETF (MGC - Free Report) is probably a suitable pick. The fund just hit a 52-week high and is up 42.8% from its 52-week low price of $105.82/share.

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

MGC in Focus

The fund's goal is to track as closely as possible, before fees and expenses, the total return of the CRSP US Mega Cap Index. It has AUM of $3.88 billion and charges 7 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 MGC 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 38.75, which gives cues of further rally.

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