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European Equity ETF (VGK) Hits New 52-Week High

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For investors seeking momentum, Vanguard FTSE Europe ETF (VGK - Free Report) is probably on the radar. The fund just hit a 52-week high and is up 19.95% from its 52-week low price of $62.02/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:

VGK in Focus

The underlying FTSE Developed Europe All Cap Index measures the investment return of stocks issued by companies located in the major markets of Europe. VGK has double-digit exposure to the United Kingdom (23.58%), France (15.76%), Germany (14.50%) and Switzerland (14.30%). The product charges 6 bps in annual fees (See: All European Equity ETFs).

Why the Move?

The European market of the broad investing world has been an area to watch lately, as the economy expanded more than expected. The economy of the single currency bloc grew 0.4% in first-quarter 2025. Additionally, eurozone inflation approaching the ECB’s target bodes well.

Investors are shifting their focus across the Atlantic, away from U.S. assets, increasing their investment in the eurozone as highlighted by rising inflows to the European equity funds.

More Gains Ahead?

Currently, VGK has a Zacks ETF Rank #3 (Hold), with a Medium risk outlook. However, it might continue its strong performance in the near term, with a positive weighted alpha of 13.60 (as per Barchart.com), which gives cues of a further rally.


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