For investors seeking momentum, iShares Russell 2000 ETF (IWM Quick QuoteIWM - Free Report) is probably on radar. The fund just hit a 52-week high and is up 117% from its 52-week low of $95.69 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.

IWM in Focus

This fund targets the small-cap segment of the broad U.S. equity market with key holdings in healthcare, industrials, financials, information technology and consumer discretionary. It charges 19 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 its outperformance in the first week of 2021. COVID-19 vaccine rollout, and hopes of a bigger fiscal package and infrastructure spending under a Democratic-led U.S. Congress are propelling the small-cap indices to new highs. As small-cap companies are closely tied to the U.S. economy, these are poised to outperform when the economy improves.

More Gains Ahead?

Currently, IWM has a Zacks ETF Rank #3 (Hold) with a Medium risk outlook. Therefore, it is hard to get a handle on its future returns one way or the other. However, 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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