For investors seeking momentum, Vanguard S&P 500 ETF (VOO - Free Report) is probably on radar. The fund just hit a 52-week high and is up 26.9% from its 52-week low price of $239.58/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:
VOO in Focus
VOO invests in stocks on the S&P 500 Index, representing 500 of the largest U.S. companies. It has key holdings in information technology, healthcare, financials and communication services. The product charges 3 basis points in fees (see: all the Large Cap Blend ETFs here).
Why the Move?
The U.S. stock market has been an area to watch lately given that the major bourses are scaling new highs. The latest rally has been powered by Q4 earnings optimism and the initial U.S.-China trade deal. Under the terms of the phase one trade deal, China has agreed to purchase an additional $200 billion ($52.4 billion worth of energy, $32 billion in agriculture, $37.9 billion in services and $77.7 billion of manufactured products) of U.S. goods and services over the next two years. In return, the united States has agreed to cut half the tariffs on $120 billion in Chinese products from 15% to 7.5%.
More Gains Ahead?
Currently, VOO has a Zacks ETF Rank #2 (Buy) with a Medium risk outlook, suggesting continued outperformance in the months ahead. Further, 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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