For investors seeking momentum, Vanguard Russell 2000 ETF (VTWO - Free Report) is probably a suitable pick. The fund just hit a 52-week high — up roughly 17.9% from its 52-week low of $114.14/share.
Does it have more gains in store? Let’s take a look at the fund and its near-term outlook to gain an insight into where it might be headed:
VTWO in Focus
The fund follows the Russell 2000 Index measures the performance of the small-cap segment of the U.S. equity universe. The fund charges 10 bps in fees (see all Small Cap Blend ETFs here).
Why the Move?
As U.S.-China trade tensions are still in place despite the phase-one trade deal, global markets turned edgy in the recent trading sessions. And small-cap stocks, which are more closely tied to the domestic economy, staged an uptrend. A dovish Fed, cheaper valuation and a relatively better-positioned U.S. economy in the developed market pack have boosted the fund.
More Gains Ahead?
The fund has a Zacks Rank #1 (Strong Buy) and has a positive weighted alpha of 14.20, which gives cues of further rally.
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