For investors seeking momentum, Small Cap Growth Alpha ETF (JSML Quick QuoteJSML - Free Report) is probably on radar now. The fund just hit a 52-week high and is up more than 23% from its 52-week low price of $30.00/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:

JSML in Focus

This product gives exposure to small-sized capitalization stocks that are poised for smart growth by assessing each company’s performance on the basis of growth, profitability, and capital efficiency. Ubiquiti Networks, ICU Medical and Pegasystems are the top three holdings. It charges 50 bps in fees (see all Small Cap ETFs here).

Why the Move?       

the U.S. House of Representatives gave final nod on Dec 20 to the biggest revamp of the US tax code in three decades. Tax cuts will help corporations to generate more profits. Plus, realizing the tax cuts, people will likely boost its expenditure. Since small-cap stocks are domestically focused, these higher outlays and corporate tax savings will boost the business of the small corporations.

More Gains Ahead?

The fund has a Zacks Rank #3 (Hold). Also, the fund has a positive weighted alpha of 22.60. 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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