For investors looking for momentum, Vanguard Growth ETF (VUG Quick QuoteVUG - Free Report) is probably a suitable pick. The fund just hit a 52-week high and is up 43.1% from its 52-week low price of $218.28/share.

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

VUG in Focus

The fund seeks to track the performance of the CRSP US Large Cap Growth Index. It has AUM of $86.74 billion and charges 4 basis points in annual fees.

Why the Move?

Wall Street has been loudly cheering the third-quarter earnings season that has begun on a positive note. Going on, there have been certain upbeat economic data releases that have raised investor optimism. The coronavirus vaccine rollout is gradually helping control the spread of the outbreak across the globe. Accordingly, the global demand and economic growth levels are on the path of recovery from the pandemic-led slump. Investors and vaccine makers like Moderna (MRNA) andJohnson & Johnson (JNJ) have reasons to cheer the latest update concerning the application of COVID-19 booster shots. Investors have rotated back into growth-oriented market areas in recent weeks on optimism surrounding the economic recovery. This is making funds like VUG an impressive investment option.

More Gains Ahead?

It seems like the fund will remain strong, with a positive weighted alpha of 36.98, which gives cues of a further rally.