For investors seeking momentum, Vanguard Consumer Discretionary ETF (VCR Quick QuoteVCR - Free Report) is probably on the radar. The fund just hit a 52-week high and is up about 38% from its 52-week low price of $284.84/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:

VCR in Focus

Vanguard Consumer Discretionary ETF targets the consumer discretionary sector. It has key holdings in broadline retail, automobile manufacturers, restaurants and home improvement retail. Vanguard Consumer Discretionary ETF charges investors 10 basis points a year in fees (see: all the Consumer Discretionary ETFs here).

Why the Move?

The consumer discretionary sector has been an area to watch lately, given the solid consumer trends. Lower rates coupled with rising consumer confidence bodes well for the discretionary sector. Consumer confidence in November rose to the highest level in more than a year on optimism about the potential economic growth under the President-elect Donald Trump administration. Lower rates have raised the appeal for discretionary stocks as borrowing costs are lower. This can lead to increased spending in the consumer discretionary sector.

More Gains Ahead?

Currently, VCR 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 some promise for those who want to ride this surging ETF a little further.