For investors seeking momentum, Vanguard Growth ETF VUG is probably on the radar. The fund just hit a 52-week high and is up 50% from its 52-week low of $207.94 per 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 of where it might be headed:

VUG in Focus

Vanguard Growth ETF offers exposure to the growth segment of large-cap equities. It has key holdings in information technology, consumer discretionary, industrials and health care. Vanguard Growth ETF charges 4 bps in annual fees (see: all the Large-Cap Growth ETFs here).

Why the Move?

The large-cap growth corner of the broad investing world has been an area to watch lately, given the persistent surge in the stock market. All three major indices are hitting new highs on optimism over Fed rate cut talks. The Fed penciled in three rate cuts for 2024, spreading huge optimism in the stock market. In particular, growth stocks tend to outperform in a trending market (i.e., a market characterized by a prolonged uptrend).

More Gains Ahead?

Currently, VUG has a Zacks ETF Rank #2 (Buy) with a Medium risk outlook, suggesting that the outperformance could continue in the months ahead. Many spaces that make up this ETF have a strong Zacks Industry Rank. So, there is definitely some promise for those who want to ride this surging ETF a little further.

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Vanguard Growth ETF (VUG): ETF Research Reports

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