For investors seeking momentum, Vanguard Dividend Appreciation ETF (VIG Quick QuoteVIG - Free Report) is probably on radar. The fund just hit a 52-week high, and is up 23% from its 52-week low price of $136.01 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:

VIG in Focus

This fund offers exposure to companies with a record of growing dividends year over year. It has key holdings in industrials, consumer discretionary, financials, technology and healthcare with a double-digit allocation each. The fund charges 0.06% in expense ratio (see: all the Large Cap Blend ETFs here).

Why the Move?

The dividend corner of the broad investing world has been an area to watch lately given the bouts of volatility triggered by inflation fears. Against such a backdrop, dividend-paying securities are a major source of consistent income for investors though these do not offer dramatic price appreciation. This is especially true as the companies that pay out dividends generally act as a hedge against economic uncertainty and provide downside protection by offering outsized payouts or sizable yields on a regular basis.

More Gains Ahead?

Currently, VIG has a Zacks ETF Rank #1 (Strong 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.