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Mega-Cap Growth ETF (MGK) Hits New 52-Week High
For investors seeking momentum, Vanguard Mega Cap Growth ETF (MGK - Free Report) is probably on the radar now. The fund just hit a 52-week high and is up about 41% from its 52-week low price of $174.51/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 114 securities in its basket with key holdings in information technology, consumer discretionary and industrials. It charges 7 basis points in annual fees (see: all the Large Cap Growth ETFs here).
Why the Move?
The growth space of the broader U.S. stock market has been an area to watch out for lately given the rally in the stock market. The S&P 500 and the tech-heavy Nasdaq Composite Index have been hitting record highs on renewed optimism over continued economic growth after Fed’s Pfizer’s (PFE - Free Report) full-vaccine approval. This coupled with strong earnings momentum has rekindled investors’ appetite for riskier assets. In particular, growth stocks tend to outperform in a trending market (i.e. a market characterized by a prolonged uptrend).
More Gains Ahead?
Currently, 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.