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Growth ETF (VUG) Hits New 52-Week High

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For investors seeking momentum, Vanguard Growth ETF (VUG - Free Report) is probably on the radar. The fund just hit a 52-week high and is up 51.51% from its 52-week low price of $260.65/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 of where it might be headed:

VUG in Focus

The underlying CRSP US Large Cap Growth Index measures the performance of the large-capitalization growth sector. The ETF has a major tilt toward the information technology sector, with a share of 57.76% of the assets, followed by consumer discretionary (18.40%) and industrials (8.51%). The product charges 4 bps in annual fees (See: All Large Cap Growth ETFs).

Why the Move?

The growth segment of the broader market, which tends to outperform during an uptrend, is becoming an attractive investment option, given the robust rally in the U.S. stock market.

The rally in the market — fueled by increasing interest rate cut expectations, moderating inflation levels and AI developments— led to strong returns in the segment.

More Gains Ahead?

Currently, VUG has a Zacks ETF Rank #2 (Buy) with a Medium risk outlook. However, it might continue its strong performance in the near term, with a positive weighted alpha of 44 (as per Barchart.com), which gives cues of a further rally.


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