Technology

Large-Cap Growth ETF (VOOG) Hits New 52-Week High

For investors seeking momentum, Vanguard S&P 500 Growth ETF VOOG is probably on radar now. The fund just hit a 52-week high and is up around 27.2% from its 52-week low price of $125.87/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:

VOOG in Focus

This ETF offers exposure to the stocks in the S&P’s 500 Growth Index composed of the growth companies in the S&P 500. It has key holdings in information technology, healthcare, communication services and consumer discretionary. It charges 15 basis points in annual fees (see: all the Large Cap Growth ETFs here).

Why the Move?

The growth space of the broad U.S. stock market has been an area to watch lately given that better-than-expected earnings led to a new closing high for the S&P 500 recently. Investors are feeling optimistic about the global economy given signs of improving growth in China with new measures and reforms, as well as steady albeit slowing growth in the U.S. economy. The Fed’s decision of not raising interest rates this year after seven hikes over the past two years also bolstered investors’ sentiment. Further, an oil price surge and bouts of upbeat data globally are providing strong support to the bulls. In such a scenario, growth stocks tend to outperform during an uptrend.

More Gains Ahead?

Currently, VOOG has a Zacks ETF Rank #1 (Strong Buy) with a Medium 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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Vanguard S&P 500 Growth ETF (VOOG): ETF Research Reports

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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