For investors seeking momentum, Vanguard Dividend Appreciation ETF (VIG Quick QuoteVIG - Free Report) is probably on the radar. The fund just hit a 52-week high and is up 24% from its 52-week low of $146.20 per 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:

VIG in Focus

Vanguard Dividend Appreciation ETF is the largest and the most popular ETF in the dividend space. It offers exposure to the stocks of companies that have a record of increasing dividends over time. Vanguard Dividend Appreciation ETF charges 6 bps in annual fees. (see: all the Large Cap Blend ETFs here).

Why the Move?

The dividend corner of the broad investing world has been an area to watch lately, given the latest inflation data, which came in hotter than expected. The data has led to uncertainty over the first rate cuts from the Federal Reserve. Amid such a scenario, dividend investing seems to be a viable strategy as it offers safety in the form of payouts and stability through mature companies that are less volatile to the large swings in stock prices. The dividend-paying securities are major sources of consistent income for investors when returns from equity markets are at risk.

More Gains Ahead?

VIG has a Zacks ETF Rank #1 (Strong Buy) with a Medium risk outlook, suggesting that the outperformance could continue in the months ahead. However, many spaces 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.