Macroeconomic and political events can impact markets, especially in the short term. The election results propelled broader indexes like the S&P 500 and Nasdaq Composite to new heights.
In the two days after the election, five Vanguard sector exchange-traded funds (ETFs) made new all-time highs: the Vanguard Information Technology ETF (NYSEMKT: VGT), Vanguard Consumer Discretionary ETF (NYSEMKT: VCR), Vanguard Communications ETF (NYSEMKT: VOX), Vanguard Financials ETF (NYSEMKT: VFH), and the Vanguard Industrials ETF (NYSEMKT: VIS).
All five ETFs mirror the performance of a stock market sector by investing in dozens, if not hundreds, of companies. The expense ratio for each fund is just 0.1%, or $1 for every $1,000 invested — which is reasonable considering it would be difficult to replicate the level of diversification these funds offer.
Here’s what’s driving each fund and whether they…
