For investors seeking momentum, Vanguard Consumer Discretionary ETF VCR is probably on the radar. The fund just hit a 52-week high and is up about 32% from its 52-week low price of $247.52/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 of where it might be headed:

VCR in Focus

Vanguard Consumer Discretionary ETF targets the consumer discretionary sector. It has key holdings in broadline retail, automobile manufacturers, restaurants and home improvement retail. Vanguard Consumer Discretionary ETF charges investors 10 basis points a year in fees (see: all the Consumer Discretionary ETFs here).

Why the Move?

The consumer discretionary sector has been an area to watch lately as investors flocked to beaten-down stocks, shunning hot technology stocks. Expectations of the Fed cutting rates anytime soon have raised the appeal for the consumer discretionary sector. Lower rates will lead to reduced borrowing costs, which can lead to increased consumer spending for the consumer discretionary sector.

More Gains Ahead?

Currently, VCR 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. However, many of the segments that make up this ETF have a strong Zacks Industry Rank. So, there is some promise for those who want to ride this surging ETF a little further.

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Vanguard Consumer Discretionary ETF (VCR): ETF Research Reports

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