For investors seeking momentum, Vanguard Information Technology ETF (VGT Quick QuoteVGT - Free Report) is probably on radar. The fund just hit a 52-week high and is up 38% from its 52-week low price of $291.62/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 of where it might be headed:

VGT in Focus

Vanguard Information Technology ETF offers exposure to multi-capitalization equity in the information technology sector. It charges 10 bps in annual fees. (see: all the Technology ETFs here).

Why the Move?

The broad technology sector has been an area to watch lately, given its outperformance relative to the S&P 500. U.S. tech stocks are enjoying their greatest outperformance, relative to the S&P 500, in 97 years. The hype surrounding artificial intelligence, easing inflation, upbeat corporate earnings and investors’ flight to mega-cap tech stocks have been driving the sector higher. As the tech sector relies on borrowing for superior growth, it would be cheaper to borrow more for further initiatives when interest rates are low.

More Gains Ahead?

Currently, VGT has a Zacks ETF Rank #2 (Buy) with a Medium risk outlook, suggesting that the outperformance could continue in the months ahead. However, many spaces 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.