Investors seeking momentum may have ProShares Russell 2000 Dividend Growers ETF (SMDV Quick QuoteSMDV - Free Report) on radar now. The fund recently hit a new 52-week high. Shares of SMDV are up approximately 20.8% from their 52-week low of $55.44/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.

SMDV In Focus

The underlying Russell 2000 Dividend Growth Index targets companies that are currently members of the Russell 2000 Index and have increased dividend payments each year for at least 10 years. The fund charges 40 bps in fees.

Why The Move?

Things are taking a turn for the better for the pint-sized stocks. Upbeat earnings and cheaper valuation augur well for the pint-sized stocks. Since the small-caps are more domestically-focused and do not have much foreign exposure, releases of decent U.S. economic indicators are going in favor of small-cap stocks. Moreover, dividend-growing stocks offer a quality exposure. This is why SMDV is now in a sweet spot.

More Gains Ahead?

The fund has a positive weighted alpha of 10.00. So, there is a decent outlook ahead for those who want to ride this surging ETF a shade further.