For investors seeking momentum, First Trust Health Care AlphaDEX Fund (FXH Quick QuoteFXH - Free Report) is probably on radar now. The fund just hit a 52-week high, and is up about 23% from its 52-week low price of $63.96/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:

FXH in Focus    

This fund targets the healthcare segment of the broad U.S. market and uses the AlphaDEX methodology to select stocks from the Russell 1000 index. The approach results in a basket of 77 securities, which are widely spread across components, with none holding more than 2.65% of assets. The product has key holdings in health care providers & services, health care equipment & supplies    and biotechnology. It charges investors 62 basis points a year in fees (see: all the Healthcare ETFs here).

Why the Move?

The healthcare space has been an area to watch lately given that it is among the best performing sectors this year driven by its non-cyclical nature, which provides a defensive tilt to the portfolio in a turbulent market. Additionally, rising M&A, faster drug approval and positive regulatory backdrop added to the strength.

More Gains Ahead?

Currently, FXH has a Zacks ETF Rank #2 (Buy) with a Medium risk outlook, suggesting that the outperformance could continue in the months ahead. Further, many of the segments that make up this ETF have a strong Zacks Industry Rank, so there is definitely still some promise for those who want to ride on this surging ETF a little longer.

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