For investors seeking momentum, iShares Russell 2000 Growth ETF (IWO - Free Report) is probably on the radar now. The fund just hit a 52-week high and is up more than 25.1% from its 52-week low price of $161.33/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:

IWO in Focus

IWO provides exposure to small-cap stocks whose earnings are expected to grow at an above-average rate relative to the market. Holding 1183 stocks, it is well spread across securities with none holding more than 1.11% share. The fund has key holdings in healthcare, information technology, industrials and consumer discretionary. It charges 24 basis points in annual fees.

Why the Move?

The growth space of the small-cap segment has been an area to watch lately given the strength in U.S. dollar, trade tensions, and geopolitical worries. These events have shifted investors’ focus to small-cap stocks, which are closely tied to the U.S. economy and do not have much exposure to the international market. Additionally, the pint-sized stocks are considered safe and better plays if any political issue creeps into the picture. Further, growth stocks tend to outperform in a trending market (a market characterized by a prolonged uptrend).

More Gains Ahead?

Currently, IWO has a Zacks ETF Rank #3 (Hold) with a High-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.