For investors seeking momentum, VanEck Vectors BDC Income ETF (BIZD Quick QuoteBIZD - Free Report) is probably on radar now. The fund just hit a 52-week high, which is up roughly 31.9% from its 52-week low price of $13.50/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.

BIZD in Focus    

BIZD looks to track the MVIS US Business Development Companies Index and gives exposure to the overall performance of publicly traded business development companies. BIZD has top holdings in Ares Capital Corp (16.31%), American Capital Ltd (9.75%) and Prospect Capital Corp (9.63%) (see all financials ETFs here).

Why the Move?

Business Development Companies (BDCs) are firms that loan out to small- and mid-sized companies at relatively higher rates and often grab debt or equity stakes in those companies. BDCs dole out high cash payments and capture the equity performance of the borrower.

The U.S. law obliges BDCs to hand out more than 90% of their annual taxable income to their shareholders. As the economy is on the mend and rate hike talks are doing rounds, investors have probably grown a liking for this BDC Income ETF, which yields over 8.5%. 

More Gains Ahead?

The fund has a positive weighted alpha of 9.70. Since a positive weighted alpha hints at more gains, this surging ETF can be tried a little further, especially as long as rate hike talks are prevalent.

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