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Large-Cap ETF (MGC) Hits New 52-Week High

Sweta Killa

For investors seeking momentum, Vanguard Mega Cap ETF MGC is probably on radar. The fund just hit a 52-week high and is up around 27.2% from its 52-week low price of $81.19/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:

MGC in Focus

This ETF offers exposure to the largest U.S. stocks representing approximately the top 70% of market capitalization. It has key holdings in information technology, financials, consumer services, health care and industrials. It charges 7 basis points in annual fees (see: all the Large Cap Blend ETFs here).

Why the Move?

The large-cap space of the broad U.S. stock market has been an area to watch lately given the boom in the stock market. Wall Street logged its strongest performance in decades in the first half of the year and extended its solid run to start the second half. In fact, the S&P 500 and the Dow Jones are hitting new highs. Hopes of Fed’s easy money policy, trade optimism, and waves of mergers and acquisitions led to the rally.

More Gains Ahead?

Currently, MGC has a Zacks ETF Rank #3 (Hold) with a Medium risk outlook. Therefore, it is hard to get a handle on its future returns one way or the other. 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 Mega Cap ETF (MGC): ETF Research Reports
 
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