For investors seeking momentum, Vanguard Growth ETF (VUG Quick QuoteVUG - Free Report) is probably on radar now. The fund just hit a 52-week high and is up roughly 24.2% from its 52-week low price of $92.47/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:

VUG in Focus

VUG provides exposure to the broad basket of 323 growth stocks of the large-cap segment with key holdings in technology and consumer services. It has a significant concentration on the top three firms that collectively make up for 14.7% share while other firms hold less than 3% of assets. The product charges investors 8 basis points in fees (see: all the Large Cap ETFs here).

Why the Move?

The growth space of the broad U.S. stock market has been an area to watch lately given their outperformance on Trump euphoria and improving domestic fundamentals. Growth stocks are leading the rally to start the year, as these tend to outperform in a trending market (i.e. a market characterized by a prolonged uptrend). Additionally, solid manufacturing and industrial activities across the globe are providing a boost to these stocks.

More Gains Ahead?

Currently, VUG has a Zacks ETF Rank of 3 or ‘Hold’ rating with a Medium risk outlook. Therefore, it is hard to get a handle on its future returns one way or the other. However, many of the 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.

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