For investors seeking momentum, Vanguard Mega Cap Growth ETF (MGK Quick QuoteMGK - Free Report) is probably on radar. The fund just hit a 52-week high and is up 38.6% from its 52-week low of $165.89 per 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:

MGK in Focus

Vanguard Mega Cap Growth ETF provides diversified exposure to the largest growth stocks in the U.S. market. It has key holdings in information technology and consumer discretionary. MGK charges 7 bps in annual fees (see: all the Large-Cap Growth ETFs here).

Why the Move?

The large-cap growth corner of the broad investing world has been an area to watch lately, given that the S&P 500 and Nasdaq are at this year’s high. The superb rally in the mega-cap tech stocks and hopes of an imminent end to rate rises have bolstered investors’ confidence. In particular, growth stocks are leading the rally as these tend to outperform in a trending market (i.e. a market characterized by a prolonged uptrend).

More Gains Ahead?

Currently, MGK has a Zacks ETF Rank #3 (Hold) with a Medium risk outlook. Therefore, it is hard to get a handle on its future returns one way or the other. However, many segments 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.