Mid-Cap Growth ETF (VOT) Hits New 52-Week High

For investors seeking momentum, Vanguard Mid-Cap Growth ETF VOT is probably on their radar. The fund just hit a 52-week high and is up 42.2% from its 52-week low price of $171.02 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:

VOT in Focus

This fund offers exposure to the growth segment of the mid-cap segment. It has key holdings in information technology, industrials, healthcare and consumer discretionary. The fund charges 7 basis points in annual fees (see: all the Mid Cap Growth ETFs here).

Why the Move?

The mid-cap space of the broad U.S. stock market has been an area to watch lately given the bouts of volatility. While stronger earnings are fueling growth in the stock market, rising COVID-19 cases due to the Delta variant are making investors jittery. In such scenario, mid-cap ETFs offer the best of both worlds — growth and stability — when compared to small-cap and large-cap counterparts. Large companies are normally known for stability and the smaller ones for growth.

More Gains Ahead?

Currently, VOT has a Zacks ETF Rank #2 (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 some promise for those who want to ride this surging ETF a little further.

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Vanguard MidCap Growth ETF (VOT): ETF Research Reports
 
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