For investors seeking momentum, Vanguard Materials ETF (VAW Quick QuoteVAW - Free Report)  is probably on radar. The fund just hit a 52-week high and is up about 36% from its 52-week low price of $144.30/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:

VAW in Focus

The underlying MSCI US Investable Market Materials 25/50 Index includes stocks of U.S. companies within the materials sector. The product charges 10 basis points in annual fees.

Why the Move?

The U.S. materials sector has been an area to watch lately, given the latest passage of the $1.2 trillion worth of the infrastructure bill. Infrastructure and industrial activities will definitely require materials and thus the sector will emerge as yet another beneficiary. Plus, higher pent-up demand and an improving labor market should boost the inflationary pressure and increase the price of materials.

More Gains Ahead?

The fund VAW has a Zacks ETF Rank #2 (Buy). Plus, VAW should remain strong ahead given a positive weighted alpha of 30.04. As a result, there is definitely still some promise for risk-aggressive investors who want to ride on this surging ETF.