Consumer Staples ETF Vanguard VDC is probably on the radar for investors seeking momentum. The fund just hit a 52-week high and has moved up 11.71% from its 52-week low price of $202.96/share.
Are more gains in store for this ETF? Let us 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.
VDC in Focus
The underlying MSCI US Investable Market Consumer Staples 25/50 Index measures the investment return of stocks in the consumer staples sector. The product charges 9 bps in annual fees (see: all Consumer Staples ETFs).
Why the Move?
The consumer staples sector of the market has been an area to watch lately, given the rising volatility. An uncertain U.S. trade policy, coupled with a downturn in tech stocks, is pushing investors to shift their focus toward defensive funds. Consumer Staples funds act as a safe haven amid political and economic turmoil.
More Gains Ahead?
Currently, VDC has a Zacks ETF Rank #3 (Hold) with a Medium risk outlook. It might continue its strong performance in the near term, with a positive weighted alpha of 5.17 (per Barchart.com), which gives cues of a further rally.
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Vanguard Consumer Staples ETF (VDC): ETF Research ReportsThis article originally published on Zacks Investment Research (zacks.com).
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