For investors seeking momentum, PowerShares High Yield Equity Dividend Achievers ETF (PEY) is probably on radar now. The fund just hit a 52-week high, which is up roughly 64.5% from its 52-week low price of $9.20/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:

PEY in Focus    

The product offers exposure to companies that have high dividend yield and raise dividends consistently. Utilities, energy, financials and consumer staples are the top four sectors of the fund with a double-digit weight each. The fund charges 54 bps in fees (see: Total Market (U.S.) ETFs here).

Why the Move?

The fund offers true quality exposure with higher yields and consistent dividend growth. Notably, the present investing backdrop is a little unsteady. On the one hand, a certain level of risk-on sentiment thanks to steady U.S. economic recovery might favor risky investments. On the other hand, volatility levels may flare up on a sooner-than-expected Fed rate hike bet.

This makes dividend achievers more intriguing as focusing on stocks with consistent dividend payments point to quality investing. Also, the fund’s high-yielding nature is an added advantage.

More Gains Ahead?

Currently, PEY has a Zacks ETF Rank #2 (Buy). Moreover, the fund has a positive weighted alpha of 18.00. A positive weighted alpha hints at more gains.

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