For investors seeking momentum, Vanguard Mega Cap Growth ETF (MGK - Free Report) is probably on the radar now. The fund just hit a 52-week high and is up about 22% from its 52-week low price of $83.68/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:

MGK in Focus

This ETF offers diversified exposure to the largest growth stocks in the U.S. market. It holds 139 securities in its basket with none accounting for more than 8% of total assets. It has key holdings in information technology, consumer services, healthcare, consumer goods and financials. It charges 7 basis points in annual fees.

Why the Move?

The growth space of the broad U.S. stock market has been an area to watch lately given that the stock market is marching higher, hitting multiple fresh highs. Strong corporate earnings, accelerating economic activity, continued job gains and improving consumer confidence are boosting investor’s confidence dodging fears of Washington turmoil, geopolitical risks, and lofty valuation. Growth stocks tend to outperform when the stock market is on an uptrend and confidence level is high.