For investors seeking momentum, First Trust Financials AlphaDEX Fund (FXO Quick QuoteFXO - Free Report) is probably on radar now. The fund just hit a 52-week high, which is up roughly 1.1% from its 52-week low price of $24.31/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.

FXO in Focus

FXO focuses mostly on the financial segment of the U.S. market, holding 175 stocks in its basket. It is a mid-cap centric fund with key holdings in the insurance, REITs and banks. The fund charges investors 64 basis points a year in fees and maintains a well-diversified portfolio with only 1.2% of assets allocated to the top firm (see: all the Financials ETFs here).

Why the Move?

The financial sector has been an area to watch lately given the rising prospect of a rate hike by the end of this year. The Fed chair Janet Yellen along with some of key officials recently indicated that a rate hike may come sooner on the back of improving economic scenario. Better-than-expect second-quarter results from some of the behemoths in the domain also played an important role boosting the sector in recent times.     

More Gains Ahead?

Currently, FXO has a Zacks ETF Rank #3 (Hold) with a Medium risk outlook, so it is hard to get a handle on its future returns one way or another. However, a positive weighted alpha of 0.76 hints at more gains. So there is definitely some promise for those who want to ride this surging ETF a little further.

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