(VIOO) Vanguard S&P Small-Cap 600 - Ratings and Ratios

The Vanguard S&P Small-Cap 600 Index Fund ETF Shares (VIOO) is designed to mirror the performance of the S&P SmallCap600 Index, a benchmark that tracks the US small-cap segment. By employing a replication strategy, the fund invests in the constituent stocks of the index, maintaining a similar weightage to ensure that its returns closely track the underlying index.

As a Small Blend ETF, VIOO provides diversified exposure to the US small-cap market, characterized by companies with relatively smaller market capitalizations. This category is known for its potential for growth, albeit with higher volatility compared to larger-cap counterparts. The funds indexing approach is aimed at minimizing tracking errors and providing investors with a cost-effective means to tap into this market segment.

Analyzing the funds recent performance and technical indicators, we observe that the current price is $100.09, slightly above its 20-day Simple Moving Average (SMA) of $98.59, indicating a positive short-term trend. The 50-day SMA at $94.57 further supports this upward momentum, while the 200-day SMA at $103.25 suggests that the fund is currently below its longer-term average, potentially indicating a consolidation phase. The Average True Range (ATR) of 1.52 or 1.52% signifies moderate daily price volatility.

Given the current technical setup and fundamental data, including Assets Under Management (AUM) of $2824.61 million, a forecast can be made. If the fund continues to trade above its 20-day and 50-day SMAs and manages to break through the 52-week high of $116.27, it could signal a strong uptrend, potentially driven by a continued recovery in the small-cap segment. Conversely, a drop below the 52-week low of $83.80 could indicate a significant downturn. Based on these technical and fundamental insights, a potential short-term target could be a move towards $105, assuming the current upward momentum is sustained. However, a breach of the 200-day SMA at $103.25 could pose a challenge, requiring careful monitoring of the funds performance.