For investors seeking momentum, Vanguard FTSE All-World ex-US ETF (VEU - Free Report) is probably on radar now. The fund just hit a 52-week high and is up nearly 21% from its 52-week low price of $43.05/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:
VEU in Focus
This ETF offers broad exposure across developed and emerging non-U.S. equity markets around the world. It has key holdings in Europe and Pacific accounting for 44.4% and 29.7% share, respectively. From a sector look, financials dominates the fund’s portfolio with about one-fourth share while industrials, consumer discretionary and consumer staples round off the top three with a double-digit exposure each. It charges 11 basis points in annual fees (see: all the World ETFs here).
Why the Move?
The global stock market has been an area to watch lately given a pickup in economic activity in many parts of the world, robust corporate earnings, and improving investor sentiment. Additionally, the political gridlock in Washington, North Korea tensions and doubts over Trump’s pro-growth reforms are acting as tailwinds to the international market. Further, a subdued dollar has added to the strength.
More Gains Ahead?
Currently, VEU has a Zacks ETF Rank #2 (Buy) with a Low 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.
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