190.50 +0.31 (0.16%)
After hours: 5:14PM EST
|Bid||189.98 x 800|
|Ask||191.34 x 1000|
|Day's Range||188.26 - 190.60|
|52 Week Range||141.18 - 193.40|
|PE Ratio (TTM)||N/A|
|YTD Daily Total Return||2.90%|
|Beta (5Y Monthly)||1.06|
|Expense Ratio (net)||0.04%|
Vanguard Growth Index Fund ETF Shares (VUG) employs full replication of the CRSP U.S. Large Cap Growth Index. CRSP defines large cap stocks as those in the largest 85th percentile of the market, suggests fund expert Brian Kelly, editor of MoneyLetter.
U.S. growth stocks were once again among the best performers of 2019. However, a recent market rotation toward value stocks and two new international trade deals has the outlook for foreign value stocks ...
One of the more prominent themes in the world of exchange traded funds this year has been diminishing costs. Whether it's by way of brokers eliminating commissions, issuers lowering annual expense ratios ...
Value stocks have been flashing warning signs for the past two months. Turns out it was just a false alarm.Source: Shutterstock If you've ever sat through a 401k benefits meeting at work or met with a financial advisor, you've likely heard of growth and value stocks. Benefits managers and financial advisors love to talk about the benefits of diversifying between value and growth stocks.They're not wrong. Diversifying between these two stock styles will give you a stronger, more balanced portfolio.InvestorPlace - Stock Market News, Stock Advice & Trading TipsGrowth stocks tend to outperform value stocks when the stock market starts to rebound. This happens because traders tend to sell -- and take profits on -- the conservative value stocks in their portfolio as they become more confident. They then take that money and put it into flashier, more aggressive growth stocks.Value stocks, on the other hand, tend to outperform growth stocks when the stock market pulls back. This happens because traders tend to sell -- and take profits on -- the aggressive growth stocks in their portfolio as they become more nervous. They then take that money and put it into cheaper, more conservative value stocks.Having both in your portfolio can help you balance out your returns. Watching for Growth Versus Value Warning SignsInterestingly, because these two stock styles tend to underperform and outperform in different market environments, we can also watch them for warnings about where the stock market is headed.By comparing growth and value stocks, we can see whether Wall Street is expecting the stock market to rise or is preparing for a potential pullback. * 7 Marijuana Penny Stocks That Have Ridiculous Possibilities When growth stocks are in favor, we can be increasingly confident that traders believe the stock market is likely to do well. When value stocks are in favor, we can be increasingly confident that traders believe the stock market is likely to do poorly.You can easily compare the performance of these two stock styles by creating a relative-strength chart comparing two exchange-traded funds. In this case, the Vanguard Growth Index Fund ETF (NYSEARCA:VUG) is the first ETF in the pairing and the Vanguard Value Index Fund ETF (NYSEARCA:VTV) is the second.When the VUG/VTV relative-strength chart is moving higher, it tells you that VUG is outperforming VTV. This means the S&P 500 is likely doing well. Conversely, when the VUG/VTV relative-strength chart is moving lower, it tells you that VUG is underperforming VTV and the S&P 500 is likely feeling some bearish pressure.The comparison of the VUG/VTV relative-strength chart and the S&P 500 (SPX) chart in the figure below shows how the VUG/VTV chart tends to diverge from the S&P 500 chart before major trend changes. VUG/VTV Compared to the S&P 500Source: TradingViewThe VUG/VTV relative-strength chart started trending lower in mid-2018 before the S&P 500 topped out in September. In late 2018, before the S&P 500 bottomed out the day after Christmas, the VUG/VTV relative-strength chart was trending higher.Recently, the VUG/VTV relative-strength chart has been trending lower while the SPX has been breaking to new all-time highs.This divergence was a warning sign that traders may be losing confidence in the current bullish rally.Luckily for the bulls on Wall Street, that warning sign turned out to be a false alarm.If you look at the closer view of the VUG/VTV relative-strength chart in the figure below, you will see that the chart just completed a bullish "wedge" continuation pattern by breaking up through the down-trending resistance level that started forming in late August. VUG/VTV Daily Relative-Strength ChartSource: TradingViewThis chart tells us that growth stocks are taking the lead once again and are starting to outperform value stocks.Seeing this gives us confidence the bullish trend in stocks is likely to continue well into the holiday season. The Bottom Line on Growth StocksYou've got to take what the market is giving you. This market continues to give us bullish gains, so we're going to keep selling put writes.John Jagerson & Wade Hansen are just two guys with a passion for helping investors gain confidence -- and make bigger profits with options. In just 15 months, John & Wade achieved an amazing feat: 100 straight winners --making money on every single trade. If that sounds like a good strategy, go here to find out how they did it. John & Wade do not own the aforementioned securities. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 7 Marijuana Penny Stocks That Have Ridiculous Possibilities * 7 High-Yield ETFs to Buy Now * 4 Dow Jones Industrial Average Stocks to Sell The post Ignore the False Alarm: Growth Stocks Are Leading the Way appeared first on InvestorPlace.
There is a good chance that the rotation from growth stocks to value stocks will be here to stay, analysts and investors told MarketWatch, but they also advised that the value/growth paradigm could be the wrong lens through which to view the current market rotation.
Market participants are betting on the record-high U.S. indices as about 120 S&P 500 companies are scheduled to release their results this week.
E-commerce and cloud titan Amazon (NASDAQ:AMZN) is often seen as the poster boy of growth stocks. But, as I've pointed out before, Amazon stock has actually underperformed the majority of growth stocks over the past year.Source: Sundry Photography / Shutterstock.com During that stretch, the Vanguard Growth ETF (NYSEARCA:VUG) is up more than 10%, while AMZN stock is down 4.6%. Year-to-date, there is a similar divergence, with the VUG ETF up 25%, versus a 15% gain for AMZN stock. Over the past three months, the divergence is wider: growth stocks are flat, and Amazon stock price is down 14%.In other words, despite being known as the poster child for growth stocks, AMZN stock has dramatically underperformed its peer growth stocks over the past year, and this underperformance has only worsened recently.InvestorPlace - Stock Market News, Stock Advice & Trading Tips * 10 Hot Stocks Staging Huge Reversals What's going on? Amazon's margin struggles are the culprit. Amazon lost its competitive edge in the online retail game, as peers like Walmart (NYSE:WMT) and Target (NYSE:TGT) have matched Amazon's free, two-day shipping offer. Amazon's response has been to offer, on some products, free one-day shipping. But as a result, its shipping costs have climbed, lowering its margins. Since this trend is expected to continue, earnings per share estimates for AMZN are dropping, causing Amazon stock price to fall.But this trend will not last long. This is a typical Amazon move. First, undercut competitors with deals. Second, gain market share. Third, ease up on the deals. Fourth, ramp up profits.Free one-day shipping is just another version of that same cycle. AMZN is in step one of the cycle. As the cycle progresses, Amazon's margins will rebound. Consequently, the recent weakness of AMZN stock is a buying opportunity for long-term investors. Why Amazon Stock Has Been WeakAmazon stock has been weak for one very simple reason: Amazon's margin growth, which was accelerating, is now slowing.In recent years, traditional retail giants like Walmart and Target have put a tremendous amount of effort and resources into building competitive online retail operations with fast delivery times. Now the e-commerce businesses of Walmart and Target are very similar to that of Amazon. As a result, Amazon has lost its competitive edge.In order to regain that competitive edge, Amazon began offering one-day free shipping. Obviously, that initiative was very expensive for Amazon, so the profit margins of its retail business dropped. The declining margin of its retail unit is offsetting the margin gains of its cloud and digital ad businesses. In Q2, the company's overall trailing 12-month operating margins actually retreated versus Q1.Its margins are expected to keep falling for the foreseeable future. As a result, analysts' average EPS estimates for 2019, 2020, and 2021 have been trending lower for the past several months. As these estimates have trended lower, AMZN stock has dropped. Why AMZN's Margin Struggles Won't LastAmazon stock price will bounce back from this recent selloff because the company's margin struggles are temporary.Amazon has used the "taking margin hits to gain market share" strategy many times. First, it take a big margin hit as it offers deals and improves customers' experience. Then, it obtains most of the market share. Third, it cuts back on its deals. Finally, its margins climb.At the end of the day, Amazon obtains higher profits on higher revenue, lifting Amazon stock price.Free one-day shipping will follow the same pattern. Right now, Amazon is in step one of the process. Over the next few months, its margins will remain depressed. However, because no other retailer is offering free one-day shipping, Amazon's market share will rise. Its higher revenue will help offset its higher costs. And, within the next few quarters, its margins will start rising again.Its margins will also be helped by its cloud and digital advertising businesses. Both of those units are growing far more quickly than its retail business and have much higher margins. The Bottom Line on AMZN StockThe near-term weakness of Amazon stock is creating a long-term buying opportunity. Right now, many investors are concerned that elevated competition in the online retail sector will permanently depress Amazon's margins.But Amazon always appears to be one step ahead in the e-commerce battles. Secondly, Amazon's other businesses - which are growing much more quickly the e-commerce - have much higher margins.As a result, Amazon's margins remain poised to rise robustly over the longer term, and its current margin weakness is just a temporary hiccup. That weakness will pass soon, enabling AMZN stock to get back to its winning ways.As of this writing, Luke Lango was long AMZN. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 10 Hot Stocks Staging Huge Reversals * 7 Under-The-Radar Growth Stocks That Could Benefit New Investors * 5 Excellent High-Yield Dividend Stocks to Buy The post Amazon Stock Owners Shouldn't Stress Over Near-Term Margin Struggles appeared first on InvestorPlace.
There’s been a lot of talk lately in the capital markets that the growth factor is headed towards the exits like they’re favorite baseball team down 10-1 in the final inning. A case-in-point example is in the chart of the Vanguard Growth Index Fund ETF Shares (VUG) . “As you can see below, the price of the fund is trading within an ascending triangle pattern, which is often looked at as a consolidation pattern before making a sharp move higher,” wrote Casey Murphy in Investopedia.
After a bumpy ride in August due to escalation in the U.S.-China trade tariff war, Wall Street heaved a sigh of relief thanks to hopes of resumption in trade talks next month and monetary easing policies across the globe.