For investors seeking momentum, SPDR S&P 600 Small Cap Growth ETF (SLYG Quick QuoteSLYG - Free Report) is probably on the radar. The fund just hit a 52-week high and is up 27% from its 52-week low price of $68.64/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:

SLYG in Focus

SPDR S&P 600 Small Cap Growth ETF offers exposure to the small-capitalization growth segment of the U.S. equity market. It has key holdings in industrials, consumer discretionary, information technology, healthcare and financials. The product charges 15 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, as investors are rotating their positions into cheap and undervalued segments of the market. The artificial intelligence (AI) craze holds the promise of ushering in fresh opportunities for growth in the small-cap space. While mega-cap companies are leading the AI world, many small-cap stocks having huge potential in this field remain untapped.

More Gains Ahead?

Currently, SLYG 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 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.