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 VUG’s Rise
As mentioned earlier, VUG has now gained 24.25% from its 52-week low, which was hit back on February 11, 2016. The fund has now returned 1.71% over the past month, 3.95% over the past three months, and 3.76% in the past six months. Those returns compare to the benchmark S&P 500 index’s 0.15%, 6.59%, and 5.52% returns in the same periods, respectively. So while VUG has underperformed the wider markets a bit over the medium term, it’s begun to outperform lately.
VUG 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 Growth ETF is an Equity-focused product issued by Vanguard Group. Its expense ratio of 0.08% makes it the #3 cheapest ETF among 30 total funds in the Large Cap Growth ETFs category.
VUG currently boasts $23.01B in assets under management (AUM), placing it #3 of 30 ETFs in its category, and #21 of 1920 total ETFs in the U.S. exchange traded universe. This massive fund has a huge investor base and plenty of liquidity.
The investment objective of the Vanguard Growth ETF seeks to track the performance of the CRSP US Large Cap Growth Index. The largest holdings in this index are mega-cap tech names like Apple, Amazon, Facebook, and Google, which themselves are near 52-week highs as well.
VUG 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. VUG gets our stamp of approval both from a short term and long term standpoint.
For more information about this ETF, including full ratings, news, data, and more, please visit VUG’s ticker page.
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