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Mid-Cap ETF (VO) Hits New 52-Week High

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For investors seeking momentum, Vanguard MidCap ETF (VO - Free Report) is probably on radar. The fund just hit a 52-week high and is up 42.3% from its 52-week low price of $168.17 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:

VO in Focus

This fund offers exposure to U.S. mid-cap stocks with key holdings in technology, consumer discretionary, industrials, healthcare and financials. The fund charges 4 basis points in annual fees (see: all the Mid Cap Blend ETFs here).

Why the Move?

The mid-cap space of the broad U.S. stock market has been an area to watch lately given the soaring stock market. While rounds of upbeat corporate earnings and Q2 optimism are driving investors’ sentiment, the rising cases of the Delta variant of COVID-19 are weighing on stocks. In this scenario, mid-cap funds offer the best of both worlds — growth and stability — when compared to the small-cap and large-cap counterparts.

More Gains Ahead?

Currently, VO has a Zacks ETF Rank #2 (Buy) with a Medium risk outlook, suggesting continued outperformance 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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