Will this ETF continue its string of recent gains? Let’s take a closer look at the tech-focused fund, its recent wins, the category it resides in, and its ratings and outlook to get a sense of whether its momentum is sustainable or not.
Inside VGT’s Rise
As mentioned earlier, VGT has now gained 35.44% from its 52-week low, which was hit back on February 8, 2016. The fund has now returned 1.88% over the past month, 5.25% over the past three months, and 11.56% in the past six months. Those returns compare to the benchmark S&P 500 index’s 0.56%, 6.72%, and 5.65% returns in the same periods, respectively. Clearly, tech-focused funds are now outperforming the wider markets by a wide margin.
VGT also 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 Information Technology Index Fund is an Equity-focused product issued by Vanguard Group. Its expense ratio of 0.10% makes it the #3 cheapest ETF among 52 total funds in the Technology Equities ETFs category.
VGT currently boasts $10.32B in assets under management (AUM), placing it #2 of 52 ETFs in its category, and #57 of 1920 total ETFs in the U.S. exchange traded universe.
The investment objective of the Vanguard Information Technology Sector ETF seeks to track the performance of a benchmark index that measures the investment return of stocks in the information technology sector, in companies that serve the electronics and computer industries or that manufacture products based on the latest applied science.
Taking a look at VGT’s top holdings, we see familiar mega cap names like Apple, Microsoft, Facebook, Alphabet, and Intel representing a huge percentage of the total. In fact, its top six holdings represent a whopping 42.91% of its total portfolio, making it extremely top-heavy.
VGT SMART Grade: More Gains Ahead?
A SMART Grade of A suggests very strong future price growth potential, so it’s reasonable to expect even more gains ahead. As long as the large cap tech names continue to lead, VGT makes a very attractive play.
For more information about this ETF, including full ratings, news, data, and more, please visit VGT’s ticker page.
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