For investors seeking momentum, Vanguard Small-Cap Growth ETF (VBK Quick QuoteVBK - Free Report) is probably on the radar. The fund just hit a 52-week high and is up 36.8% from its 52-week low price of $195.63/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:

VBK in Focus

Vanguard Small-Cap Growth ETF offers exposure to the small-capitalization growth segment of the U.S. equity market. It has key holdings in information technology, industrials, healthcare and consumer discretionary. The product charges 7 bps in annual fees (see: all the Small-Cap Growth ETFs here).

Why the Move?

The small-cap segment of the broad stock market has been an area to watch lately, given the Fed rate cuts. Small-caps will tend to outperform in a lower- rate environment. This is because small caps collectively rely more on external financing than their larger-cap peers, and therefore, falling borrowing costs are a tailwind.

More Gains Ahead?

Currently, VBK has a Zacks ETF Rank #2 (Buy) with a Medium risk outlook, suggesting that the outperformance could continue in the months ahead. Many industries 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.