For investors seeking momentum, Vanguard Dividend Appreciation ETF VIG is probably on radar. The fund just hit a 52-week high, and is up 30.2% from its 52-week low price of $91.68 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 on where it might be headed:
VIG in Focus
This fund offers exposure to companies with a record of growing dividends year over year. It has key holdings in industrials, consumer services, healthcare, financials and consumer goods, with a double-digit allocation each. The fund charges 0.06% in expense ratio (see: all the Large Cap Value ETFs here).
Why the Move?
The dividend corner of the broad investing world has been an area to watch lately given falling yields and the prospect of easing money policies. Additionally, trade war and global slowdown concerns make investors jittery. So, dividend-paying securities are the major sources of consistent income for investors since returns from the equity market are at risk. This is because dividend products offer the best combination of safety in the form of payouts and stability as these are less immune to large swings in stock prices.
More Gains Ahead?
Currently, VIG has a Zacks ETF Rank #1 (Strong Buy) with a Medium risk outlook, suggesting that the outperformance could continue in the months ahead. Further, many of the segments that make up this ETF have a strong Zacks Industry Rank, so there is definitely still some promise for those who want to ride on this surging ETF a little longer.
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Vanguard Dividend Appreciation ETF (VIG): ETF Research Reports
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