For investors seeking momentum, Vanguard Russell 2000 ETF (VTWO Quick QuoteVTWO - Free Report) is probably on radar. The fund just hit a 52-week high and is up 88% from its 52-week low of $76.92 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.

VTWO in Focus

This fund targets the small-cap segment of the broad U.S. equity market with key holdings in healthcare, financials, industrials, consumer discretionary and technology. It charges 10 basis points in annual fees (see: all the Small-Cap Blend ETFs here).

Why the Move?

The small-cap corner of the broad U.S. stock market has been an area to watch lately given a vaccine development, which is being viewed as “a beginning to the end” of the coronavirus pandemic. Moderna (MRNA Quick QuoteMRNA - Free Report) released preliminary data from its late-stage trials, which showed that its vaccine candidate was 94.5% effective against the coronavirus. The news was followed by promising late-stage trial results last week from the U.S. drugmaker Pfizer (PFE Quick QuotePFE - Free Report) and German biotech firm BioNTech for their COVID-19 vaccine candidate. The data showed that the candidate was more than 90% effective in preventing the disease. The slew of positive data has instilled strong optimism into the economy which was hit-hard by the pandemic.

More Gains Ahead?

Currently, VTWO has a Zacks ETF Rank #2 (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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