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 60% from its 52-week low price of $108.60/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 114 securities in its basket with key holdings in information technology, consumer services, financials and industrials. It charges 7 basis points in annual fees (see: all the Large Cap Growth ETFs here).

Why the Move?

The growth space of the broad U.S. stock market has been an area to watch lately given the rise in the stock market. The S&P 500 Index has turned positive for 2020 buoyed by a combination of unprecedented levels of fiscal and monetary stimulus, positive development in the coronavirus vaccine and recovering economic fundamentals. The latest bouts of data on jobs, manufacturing and consumer confidence suggest that the economy is improving. In such a scenario, growth stocks tend to outperform during an uptrend.

More Gains Ahead?

Currently, MGK has a Zacks ETF Rank #1 (Strong Buy) 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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