For investors seeking momentum, Schwab Fundamental U.S. Small Company Index ETF (FNDA Quick QuoteFNDA - Free Report) is probably on radar now. The fund just hit a 52-week high and is up 14.4% from its 52-week low price of $33.08/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:

FNDA in Focus

The fund complements market-cap indexing and provides active management by following an innovative indexing approach using fundamental measures of company size. It tracks the Russell RAFI U.S. Small Company Index. It holds 923 securities with none accounting for more than 0.36%. Industrials, consumer discretionary, information technology and financials are the top four sectors with a double-digit allocation each. The fund charges investors 25 bps a year in fees (see: all the Small Cap ETFs here).

Why the Move?

The small cap space has been an area to watch lately, given high hopes of tax reform, which is expected by the end of the year or early next year. After the House approval of the tax bill, the Senate Budget Committee approved the Senate's tax plan, bringing the upper chamber closer to a floor vote later this week. Small caps with a median effective tax rate of 31.9% are the biggest beneficiaries of the tax cuts relative to big companies.

More Gains Ahead?

Currently, FNDA 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.

Want key ETF info delivered straight to your inbox?

Zacks’ free Fund Newsletter will brief you on top news and analysis, as well as top-performing ETFs, each week. Get it free >>