VBK: Small-Cap Growth Leading The Rally, But Risks Growing

  • US small-cap growth stocks, particularly the Vanguard Small-Cap Growth Index Fund, have outperformed since mid-April, but I maintain a hold rating due to valuation concerns. VBK has surged over 14% since April 11, outperforming the S&P 500, yet its premium P/E ratio and PEG ratio suggest it's not a bargain. Despite bullish seasonality and impressive recent price action, technical indicators and long-term moving averages hint at a potential pullback or consolidation.