For investors looking for momentum, S&P 600 Small Cap Growth ETF (SLYG Quick QuoteSLYG - Free Report) is probably a suitable pick. The fund just hit a 52-week high and is up 63.6% from its 52-week low price of $56.21/share.

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

SLYG in Focus

The fund seeks to provide investment results that, before fees and expenses, correspond generally to the total return performance of The S&P SmallCap 600 Growth Index. It has AUM of $2.40 billion and charges 15 basis points in annual fees.

Why the Move?

The Wall Street rally marked by the S&P 500 index hitting new highs is putting attention to growth investing.The second-quarter earnings season saw better-than-expected results, stimulating the rally in stock markets. Investors are also relieved about the Fed’s intention to not hike interest rates in the near term. The FDA granting the first full U.S. approval to Pfizer (PFE)/BioNTech’s (BNTX) coronavirus vaccine, Comirnaty (BNT162b), has also boosted investors’ confidence in some reopening bets like airlines, travel and leisure and casino players. With growth stocks tending to outperform in a trending market (i.e. a market characterized by a prolonged uptrend), these factors are making funds like SLYG more attractive.

More Gains Ahead?

The fund has a Zacks ETF Rank #2 (Buy). It seems like it will remain strong, with a positive weighted alpha of 44.86, which gives cues of further rally.