For investors seeking momentum, Xtrackers MSCI Japan Hedged Equity ETF (DBJP Quick QuoteDBJP - Free Report) is probably on radar. The fund just hit a 52-week high and is up 18.5% from its 52-week low price of $43.99/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 of where it might be headed:

DBJP in Focus

Xtrackers MSCI Japan Hedged Equity ETF offers exposure to the Japanese equity markets, while at the same time mitigating exposure to fluctuations between the value of the U.S. dollar and Japanese yen. It charges 45 bps in annual fees (see: all the Developed Asia Pacific ETFs here).

Why the Move?

The currency-hedged corner of the broad investing world has been an area to watch lately, given the strength in the U.S. dollar. A strong greenback eats away foreign investment gains when repatriated in U.S. dollar terms, pushing them into the red even when international stocks are performing well. As such, the strength in the greenback is compelling investors to recycle their portfolios into currency-hedged ETFs. The shift in monetary policy in Japan has brought volatility to foreign-exchange markets.

More Gains Ahead?

Currently, DBJP 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 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.