For investors looking for momentum, iShares Russell 2000 Growth ETF (IWO Quick QuoteIWO - Free Report) is probably a suitable pick. The fund just hit a 52-week high and is up 129% from its 52-week low price of $129.54/share.

Let’s take a look at the fund and its near-term outlook to gain an insight into where it might be headed:

IWO in Focus

The fund provides exposure to small public U.S. companies whose earnings are expected to grow at an above-average rate relative to the market. IWO has AUM of $11.74 billion and charges 24 basis points in annual fees.

Why the Move?

Small-caps stocks, as indicated by the Russell 2000 Index, have been outperforming the broader market and hitting new all-time highs. The upside is being largely led by small-cap companies that are closely tied to the U.S. economy and thus are well-positioned to outperform when the economy improves. These stocks generally outperform on improvement in the U.S. economy. The latest developments like introduction of coronavirus vaccine are expected to drive the economy. In the current scenario, funds like IWO appear an attractive investment option.

More Gains Ahead?

It seems like the fund will remain strong, as it has a positive weighted alpha of 55.50, which gives cues of further rally.

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