Back to top
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Image: Bigstock
Materials ETF (VAW) Hits New 52-Week High
For investors seeking momentum, Vanguard Materials ETF (VAW - Free Report) is probably on radar. The fund just hit a 52-week high and is up about 36% from its 52-week low price of $144.30/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:
VAW in Focus
The underlying MSCI US Investable Market Materials 25/50 Index includes stocks of U.S. companies within the materials sector. The product charges 10 basis points in annual fees.
Why the Move?
The U.S. materials sector has been an area to watch lately, given the latest passage of the $1.2 trillion worth of the infrastructure bill. Infrastructure and industrial activities will definitely require materials and thus the sector will emerge as yet another beneficiary. Plus, higher pent-up demand and an improving labor market should boost the inflationary pressure and increase the price of materials.
More Gains Ahead?
The fund VAW has a Zacks ETF Rank #2 (Buy). Plus, VAW should remain strong ahead given a positive weighted alpha of 30.04. As a result, there is definitely still some promise for risk-aggressive investors who want to ride on this surging ETF.