For investors looking for momentum, Vanguard Materials ETF (VAW Quick QuoteVAW - Free Report) is probably a suitable pick. The fund hit a 52-week high and is up 32.3% from its 52-week low price of $151.95/share.

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

VAW in Focus

The Vanguard Materials ETF seeks to track the performance of the MSCI US Investable Market Materials 25/50 Index. It has AUM of $4.15 billion and charges an expense ratio of 10 basis points.

Why the Move?

The materials space is expected to remain strong as improving labor market conditions, growing consumer confidence, accelerated coronavirus vaccine rollout and the passage of the much-awaited $1.2-trillion infrastructure bill are pointing toward a faster recovering economy.

Also, the optimism surrounding the gradual reopening of global economies and increasing demand is painting a rosy picture for the cyclical sectors. Moreover, the emergency use authorization (EUA) for Pfizer Inc.’s (PFE) antiviral COVID-19 pill PAXLOVID relaxed concerns regarding Omicron to some extent.This is making funds like VAW an impressive investment option.

More Gains Ahead?

It seems like the Vanguard Materials ETF will remain strong, with a positive weighted alpha of 18.79, which gives cues of a further rally.