For investors seeking momentum, Invesco S&P 500 Quality ETF (SPHQ Quick QuoteSPHQ - Free Report) is probably on radar. The fund just hit a 52-week high and is up 34.1% from its 52-week low price of $39.18/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:

SPHQ in Focus

The underlying S&P 500 Quality Index tracks the performance of stocks in the S&P 500 Index that have the highest quality score, which is calculated based on three fundamental measures, return on equity, accruals ratio and financial leverage ratio. The product charges 15 bps in annual fees (See: all Style Box - Large Cap Blend here).

Why the Move?

Wall Street is under pressure due to the global economic downturn, mirroring higher interest rates and the situation in China's domestic markets. Rates are likely to remain higher for longer in the United States due to sticky inflation. Meanwhile, China's manufacturing sector shows signs of weakness, real estate sector is reeling under acute pressure, and concerns about corporate earnings and commodity demand arise. In fact, the U.S. economy too started showing signs of cooling. All these factors highlight the importance of quality ETFs.

More Gains Ahead?

The fund might continue its strong performance given a positive weighted alpha of 23.30.