For investors seeking momentum, JPM Betabuilders Japan ETF (BBJP Quick QuoteBBJP - Free Report) is probably on the radar. The fund just hit a 52-week high and is up 18.95% from its 52-week low price of $45.02/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:

BBJP in Focus

The underlying Morningstar Japan Target Market Exposure Index is a free-float-adjusted, market-capitalization-weighted index, which consists of stocks traded primarily on the Tokyo Stock Exchange or the Nagoya Stock Exchange. The fund has major exposure in industrial and consumer discretionary sectors, with a share of 25% and 23.4%, respectively. The product charges 19 bps in annual fees (see all Asia-Pacific (Developed) ETFs).

Why the Move?

A resilient Japanese economy and rising corporate profits remain the driving force behind the estimated upside in the country’s securities. Japanese stocks, which are undervalued and the recent reforms in corporate governance are expected to boost returns from equity. The resumption of production four days after the earthquake also boosts the fund’s prospects.

Optimism surrounding the fund persists due to the still cheap Japanese Yen and decreased vulnerability of corporate earnings to foreign exchange fluctuations.

More Gains Ahead?

Currently, BBJP has a Zacks ETF Rank #3 (Hold). However, it might continue its strong performance in the near term, with a positive weighted alpha of 14.20, which gives cues of a further rally.