Will this ETF continue its string of recent wins? Let’s take a closer look at the fund, its recent gains, the category it resides in, and its ratings and outlook to get a sense of whether its momentum is sustainable or not.
Inside MGK’s Rise
As mentioned earlier, MGK has now gained 23.54% from its 52-week low, which was hit back on February 11, 2016. The fund has now returned 2.10% over the past month, 4.09% over the past three months, and 4.19% in the past six months. Those returns compare to the benchmark S&P 500 index’s 0.45%, 6.54%, and 5.43% returns in the same periods, respectively. Nothing too impressive there, but new highs are new highs.
MGK currently sits above its 10-day, 20-day, 50-day, 100-day, and 200-day moving averages (MAs), which from a technical standpoint suggests a very strong possibility that the recent gains can continue. That’s because the shares have no short-term overhead resistance to bump up against.
A Look Under The Hood
Vanguard Mega Cap Growth ETF is a Equity-focused product issued by Vanguard Group. Its expense ratio of 0.09% makes it the #4 cheapest ETF among 30 total funds in the Large Cap Growth ETFs category.
MGK currently boasts $2.32B in assets under management (AUM), placing it #7 of 30 ETFs in its category, and #178 of 1920 total ETFs in the U.S. exchange traded universe.
The investment objective of the Vanguard Mega Cap 300 Growth ETF seeks to track the performance of the CRSP US Mega Cap Growth Index, representing exposure to the largest growth stocks in the U.S. market.
Since MGK concentrates on mega cap holdings, it’s clearly now benefitting from the recent flight away from small caps and back into the bigger names.
MGK SMART Grade: More Gains Ahead?
A SMART Grade of A suggests extremely strong future price growth potential, so it’s reasonable to expect even more gains ahead. MGK thus gets our highest approval.
For more information about this ETF, including full ratings, news, data, and more, please visit MGK’s ticker page.
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