For investors seeking momentum, Vanguard Russell 2000 ETF (VTWO - Free Report) is probably on radar now. The fund just hit a 52-week high and is up more than 22% from its 52-week low price of $107.77/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:
VTWO in Focus
VTWO provides diversified exposure to a broad basket of 2003 small-cap stocks. The fund has key holdings in financial service, healthcare, information technology, consumer discretionary and producer durables. It charges 15 basis points in annual fees (see: all the Small Cap ETFs here).
Why the Move?
The small-cap segment has been an area to watch lately given the continued surge in the space amid a raft of woes. This is because small-cap stocks, which are closely tied to the U.S. economy and do not have much exposure to the international market, are well insulated from the trade war fears, geopolitical tension, political instability and a strong dollar. All these are the most happening stories coming from Wall Street at present. The pint-sized stocks are considered safe and better plays if any political issue creeps into the picture.
More Gains Ahead?
Currently, VTWO has a Zacks ETF Rank #3 (Hold) with a Medium risk outlook. Therefore, it is hard to get a handle on its future returns one way or the other. However, many of the segments that make up this ETF have a strong Zacks Industry Rank, so there is definitely some promise for those who want to ride this surging ETF a little further.
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