For investors seeking momentum, SPDR Russell 2000 Low Volatility ETF (SMLV Quick QuoteSMLV - Free Report) is probably on radar now. The fund just hit a 52-week high, which is up about 26.2% from its 52-week low price of $65.94/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.

SMLV in Focus    

SMLV measures the performance of the U.S. small capitalization low volatility market. The fund charges investors 12 basis points a year in fees and has top holdings in Herman Miller, Teledyne Technologies and CYS Investments (see all small-cap ETFs here).

Why the Move?

With the U.S. economy coming up with decent-to-upbeat data points and the possibility of a sooner-than-expected rate hike rising lately, small-caps are in the spotlight. These pint-sized stocks are best-suited to capture domestic economic growth.

However, uncertainties are still lingering in the economy given the overvaluation in stock prices, the presidential election in November and persistent volatility in the oil patch. So, positive economic developments and still-shaky investor sentiment probably favored this small-cap low volatility ETF.

More Gains Ahead?

The fund has a positive weighted alpha of 16.30. Since a positive weighted alpha hints at more gains, this surging ETF can be tried a little further.

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