For investors seeking momentum, ProShares Ultra SmallCap600 (SAA Quick QuoteSAA - Free Report) is probably on radar now. The fund just hit a 52-week high and is up over 36% from its 52-week low price of $74.48/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:

SAA in Focus

This product offers 200% of the performance of the S&P SmallCap 600 Index. It charges 95 bps in fees (see all leveraged Equity ETFs here).

Why the Move?

Several factors boosted the small-cap segment lately. First, the Senate passed its version of the tax cut law which should prove beneficial for small companies. Plus, the next Fed chair Powell’s recent comments made the sector a winner. Powell said that the case for a rate hike in December is “coming together.” This is likely to translate into a higher dollar.

Small-cap stocks perform well in a rising dollar environment thanks to their greater domestic exposure. Last but not the least, the U.S. economy and consumer sentiment have been shaping up in recent months.

More Gains Ahead?

The fund has a positive weighted alpha of 24.90. A positive weighted alpha hints at more gains. As a result, there is definitely some promise for investors who want to ride on this surging ETF.

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