Investors looking for momentum can keep Vanguard Information Technology ETF (VGT - Free Report) on their radar now. The fund recently hit a new 52-week high. Shares of VGT are up approximately 31.1% from its 52-week low of $113.22 per 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.
VGT in Focus
VGT focuses on providing exposure to technology equities in the U.S. It charges 10 basis points in fees per year. It has top holdings in Apple Inc (AAPL - Free Report) , Alphabet Inc (GOOGL - Free Report) and Microsoft Corp (MSFT - Free Report) with 14.0%, 10.3% and 9.4% allocation, respectively (as of June 30, 2017) (see all Technology ETFs here).
The fund has AUM of $14 billion and trades in average volumes of 484,000 shares.
Why the Move?
The move can primarily be attributed to the tech sector’s earnings expectations. The tech-heavy Nasdaq reached a record high and was up more than 0.36% at market close on July 24, 2017, ahead of a week of tech earnings. Alphabet Inc released better-than-expected second-quarter results on July 24, 2017. Moreover, Facebook (FB - Free Report) and Amazon (AMZN - Free Report) are also scheduled to come up with their quarterly results later this week. Therefore, investors are confident and are looking at this sector as a potential investment.
More Gains Ahead?
Currently, VGT has a low 14-day volatility of 8.75% and an impressive weighted alpha of 30.4. So, there is still some promise for those who want to ride this surging ETF a little further.
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