For investors seeking momentum, iShares Russell Top 200 Growth ETF (IWY Quick QuoteIWY - Free Report) is probably on radar. The fund just hit a 52-week high and is up 62% from its 52-week low of $71.86 per 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.

IWY in Focus

This fund offers exposure to large U.S. companies whose earnings are expected to grow at an above-average rate relative to the market. It has key holdings in information technology while consumer discretionary, health care, and communication round off the next three spots. It charges 20 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 that the Nasdaq Composite Index hit new all-time highs. The latest rally can be attributed to a superb rally in the mega-cap tech stocks, trillions of dollars in monetary and fiscal stimulus, and the positive developments in potential coronavirus vaccines. In particular, growth stocks are leading the rally as these tend to outperform in a trending market (i.e. a market characterized by a prolonged uptrend).

More Gains Ahead?

Currently, IWY 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 some promise for those who want to ride this surging ETF a little further.

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