For investors seeking momentum, PowerShares Financial Preferred ETF ((PGF Quick QuotePGF - Free Report) ) is probably on radar now. The fund just hit a 52-week high, and is up roughly 58% from its 52-week low price of $12.24/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.

PGF in Focus    

PGF provides exposure to the 89 preferred securities traded in the U.S. market issued by financial institutions. The product is heavily concentrated on the top three firms, HSBC Holdings, Barclays Bank Plc and Wells Fargo & Co, at around 8.00%. The product charges investors 63 basis points in fees (see: all Convertibles/CEFs/Preferred Stock ETFs here).

Why the Move?

With financial stocks performing well lately on a decent start to the second-quarter earnings season and an ongoing hunt for yield, this ETF advanced considerably. Preferred equities are known for their high-yielding nature and normally get priority over equity shares both in case of dividend payments as well as at the time of liquidation if the company fails. Thus, preferred stocks are relatively stable and usually exhibit a low correlation with other income generating assets.

More Gains Ahead?

The fund has a positive weighted alpha of 6.14. A positive weighted alpha hints at more gains. Further, the sole lure for the sector – demand for current income – looks solid at the current level, so there is definitely some promise for those who want to ride this ETF a little further.

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