For investors seeking momentum, Invesco DB US Dollar Index Bullish Fund (UUP Quick QuoteUUP - Free Report) is probably on radar. The fund just hit a 52-week high and is up 14% from its 52-week low price of $24.61/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:

UUP in Focus

Invesco DB US Dollar Index Bullish Fund is the prime beneficiary of the rising dollar as it offers exposure against a basket of six world currencies. This is done by tracking the Deutsche Bank Long USD Currency Portfolio Index - Excess Return plus the interest income from the fund’s holdings of U.S. Treasury securities. In terms of holdings, Invesco DB US Dollar Index Bullish Fund allocates nearly 57.6% in euro and 25.5% collectively in the Japanese yen and British pound. It charges 78 bps in annual fees (see: all the Currency ETFs here).

Why the Move?

The U.S. currency has been an area to watch lately given a hawkish Fed, which underscores a strengthening economy. A healthy economy is expected to pull more capital into the country and lead to the appreciation of the U.S. dollar. Notably, the Federal Reserve raised the interest rates by 75 bps in the latest FOMC meeting to quell four-decade high inflation. The central bank seeks to fight rising inflation without sparking a recession.

More Gains Ahead?

Currently, UUP has a Zacks ETF Rank #2 (Buy) with a Medium risk outlook, suggesting continued outperformance in the months ahead. Further, Invesco DB US Dollar Index Bullish Fund might remain strong given its weighted alpha of 14.10 and 20-day volatility of 9.41%. As a result, there is definitely still some promise for investors who want to ride on this surging ETF a little further.