The Vanguard Extended Market ETF provides investors with effective exposure to the investment performance of the S&P Completion index. This index is comprised of various small- and mid-cap US stocks not included in the S&P 500. The ETF is thus considered a strong investment alternative to the large cap dominated major indices.
Stock market breadth in the US has been low (meaning that a small number of stocks are leading market gains) with most gains concentrated among large cap companies. This means that on a comparative basis, smaller companies have underperformed and currently seem to offer better value, fundamentally speaking.
Technically, the ETF price is forming an incomplete symmetrical triangle pattern (see the converging trendlines on the main chart as well as the insert), making it an attractive investment option. This pattern indicates a period of consolidation (and hence lower volatility) which typically occurs just before a breakout to the upside.
Fading downside momentum, according to the MACD indicator, as well as sidewards movement of the OBV indicator, supports a bullish bias.
Share Information
| Share code | VXF |
|---|---|
| Industry | ETFs |
| Market Capital (USD) | 14.1 billion |
| One year total return | 1.98% |
| Return year-to-date | 5.16% |
| Current price(USD) | 139.26 |
| 52 weeek high(USD) | 155.91 |
| 52 week low(USD) | 123.74 |
| Financial year end | - |
| Closing paragraph | We expect moderate price volatility going forward. |
Buy/Sell Rationale
Technical Analysis:
Long-term fundamental view:
| Share Name and position |
DIOD - Take Profit (Close the position) |
STZ - Buy (Continue to hold) |
KO - Buy (Continue to hold) |
REMX - Buy (Continue to hold) |
LIT - Buy (Continue to hold) |
HLMN - Buy (Continue to hold) |
|---|---|---|---|---|---|---|
| Entry | 82.60 | 228.16 | 61.85 | 84.60 | 62.48 | 8.01 |
| Current | 93.83 | 232.15 | 62.80 | 62.96 | 85.24 | 7.99 |
| Movement | 13.6% | 1.7% | 1.5% | 0.8% | 0.8% | -0.2% |
| Summary text | Exit the trade to reduce overall portfolio exposure. |
A bullish megaphone pattern remains of interest. The stock is testing its 200-day which overlaps its 50% Fibonacci retracement level. Upside price momentum supports the bullish trend.
Our profit target is $252 with a trailing stop-loss of $222. Exit the position on 21 June 2023. |
The presence of a symmetrical triangle pattern during a prior uptrend remains noteworthy. The stock is trading above its 200-day simple moving average. Fading upside momentum, however, is a concern to the bullish trend.
Our profit target is $67 with a trailing stop-loss at $60.90. Exit the position on 16 June 2023. |
A bullish Elliott wave pattern remains of interest. The stock is trading just below its 200-day simple moving average, though upside momentum is providing support for the bullish trend.
Our profit target is $99 with a trailing stop-loss at $79.60. Exit the position on 21 July 2023. |
A falling wedge pattern within a previous uptrend remains intriguing. Although the stock is trading below its 200-day simple moving average, recent upside momentum supports the bullish trend.
Our profit target is $71 with a trailing stop-loss of $59.60. Exit the position on 30 August 2023. |
Price action is exhibiting repetitive cycles in sequences and remains attractive. The stock is testing its 200-day simple moving average. Sudden downside momentum is of concern to the bullish trend.
Our profit target is $10 with a trailing stop-loss at $7.50. Exit the position on 10 October 2023. |
