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Consumer Discretionary ETF (VCR) Hits New 52-Week High

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Investors seeking momentum may have Vanguard Consumer Discretionary ETF (VCR - Free Report)  on radar now. The fund recently hit a new 52-week high. Shares of VCR are up approximately 45.3% from their 52-week low of $227.52/share.

But could there be more gains ahead for this ETF? Let’s take a look at the fund and the near-term outlook to get a better idea of where it might be headed.

VCR In Focus

The underlying MSCI US Investable Market Consumer Discretionary 25/50 Index is designed to transition in and out of securities affected by pending updates to the consumer discretionary sector. The fund charges 10 bps in fees.

Why The Move?

Retail sales in the United States unexpectedly increased 0.7% sequentially in September of 2021, following an upwardly revised 0.9% gain in August, beating market forecasts of a 0.2% decline. Plus, we have stepped in the all-important fourth quarter. The late October-December period embraces the key holiday season, which puts the spotlight on the performance of retailers. As loads of sales-boosting events — Halloween, Thanksgiving, Cyber Monday, Black Friday and Christmas — fall in this quartile, the sector generally sees a sales boost.

More Gains Ahead?

The fund has a Zacks Rank #1 (Strong Buy). It also has a positive weighted alpha of 31.37. So, there is a decent outlook ahead for those who want to ride this surging ETF a shade further.


 


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