Small-Cap ETF (VIOO) Hits New 52-Week High

For investors seeking momentum, Vanguard S&P Small-Cap 600 ETF VIOO is probably on radar now. The fund just hit a 52-week high and is up nearly 20% from its 52-week low price of $121.82/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:

VIOO in Focus

This fund seeks to provide exposure to the small-cap segment with key holdings in industrials, financials, information technology, consumer discretionary and health care. It is highly diversified across components with none holding more than 0.60% share and charges 15 bps in fees per year (see: all the Small Cap ETFs here ).

Why the Move?

The small-cap space of the broad U.S. stock market has been an area to watch lately given the surge in U.S. dollar. This is because small-cap stocks will benefit from a rising dollar as these are closely tied to the U.S. economy and do not have much exposure to the international market. Additionally, growing geopolitical tensions especially after the re-initiation of sanctions on Iran has raised the appeal for the pint-sized stocks, which are considered safe and better plays if any political issue creeps into the picture.

More Gains Ahead?

Currently, VIOO 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. As a result, there is still some promise for investors who want to ride on this surging ETF.

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VANGD-SP6 ETF (VIOO): 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.

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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