For investors seeking momentum, Vanguard Mega Cap Growth ETF (MGK Quick QuoteMGK - Free Report) is probably on radar now. The fund just hit a 52-week high and is up about 22% from its 52-week low price of $83.68/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 on where it might be headed:

MGK in Focus

This ETF offers diversified exposure to the largest growth stocks in the U.S. market. It holds 139 securities in its basket with none accounting for more than 8% of total assets. It has key holdings in information technology, consumer services, healthcare, consumer goods and financials. It charges 7 basis points in annual fees (see: all the Large Cap ETFs here).

Why the Move?

The growth space of the broad U.S. stock market has been an area to watch lately given that the stock market is marching higher, hitting multiple fresh highs. Strong corporate earnings, accelerating economic activity, continued job gains and improving consumer confidence are boosting investor’s confidence dodging fears of Washington turmoil, geopolitical risks, and lofty valuation. Growth stocks tend to outperform when the stock market is on an uptrend and confidence level is high.

More Gains Ahead?

Currently, MGK has a Zacks ETF Rank of 1 or ‘Strong Buy’ rating with a Medium risk outlook, suggesting that the outperformance could continue in the months ahead. Further, many of the segments that make up this ETF have a strong Zacks Industry Rank, so there is definitely still some promise for those who want to ride on this surging ETF a little longer.

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