For investors seeking momentum, O’Shares U.S. Quality Dividend ETF (OUSA Quick QuoteOUSA - Free Report) is probably on the radar. The fund just hit a 52-week high and is up 43% from its 52-week low of $27.54 per 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.

OUSA in Focus

This fund provides exposure to large and mid-cap dividend paying issuers in the United States that meet certain market capitalization, liquidity, high quality, low volatility and dividend yield thresholds, as determined by O’Shares Investment Advisers. The high quality and low volatility requirements are designed to reduce exposure to high dividend equities that have experienced large price declines. The product has key holdings in information technology, healthcare, consumer staples, and industrials. It charges 48 basis points in fees (see: all the Large Cap Value ETFs here).

Why the Move?

Quality, coupled with dividend corner of the broad investing world, has been an area to watch lately as the tax hike fears, surge in yields and uptick in corornavirus cases in Europe once again made investors jittery. In particular, the quality ETFs reduces volatility when compared to plain vanilla funds and hold up rather well during market swings. Additionally, the dovish Fed made the dividend space attractive.

More Gains Ahead?

Currently, OUSA 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.

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