Investors seeking momentum may have First Trust Municipal High Income ETF (FMHI Quick QuoteFMHI - Free Report) on radar now. The fund recently hit a new 52-week high. Shares of FMHI are up approximately 15.3% from their 52-week low of $48.41/share.

But could there be more gains ahead for this ETF? Let’s take a look at the fund and the near-term outlook to get a better idea of where it might be headed.

FMHI in Focus

This ETF is active and does not track a benchmark. The First Trust Municipal High-Income ETF is an actively managed exchange-traded fund which seeks to provide federally tax-exempt income, and its secondary objective will be long term capital appreciation. The expense ratio is 0.55% (see all Municipal Bond ETFs here).

Why the move?

Improving U.S. economic growth, Biden’s tax-the-rich-plan, higher yields probably have boosted the municipal high-income fund. The product yields 3.02% annually. Such yield appears great in the current low-rate environment.

More Gains Ahead?

The fund has a positive weighted alpha of 12.90. So, there is a decent outlook ahead for those who want to ride this surging ETF a shade further.

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