For investors seeking momentum, S&P MidCap 400 Dividend Aristocrats ETF (REGL Quick QuoteREGL - Free Report) is probably on radar now. The fund just hit a 52-week high, which is up roughly 34.4 % from its 52-week low price of $35.51/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:

REGL in Focus    

REGL focuses on mid-cap stocks which are currently members of the S&P MidCap 400 Index and have increased dividend payments annually for at least 15 years. REGL charges investors 40 basis points a year in fees and has top holdings in MDU Resources Group, Albemarle and Casey's General Stores (see all mid-cap ETFs here).

Why the Move?

A few days back, market watchers widely believed that the Fed rate hike for this year is coming soon as the U.S. economy has gained considerable momentum. But lower-than-expected job growth in August made the imminent rate hike uncertain lately.

This makes mid-cap ETFs like REGL more intriguing as this spectrum bears the traits of both large and small caps. REGL has moderate international exposure and is thus relatively unscathed by foreign currency translation. On the other hand, the U.S. economy is taking root, though at a sluggish pace.

So, while a focus on mid-caps is warranted to cash in on the growing economy, concentrating on stocks with consistent dividend hike would be better. Stocks with dividend growth point to quality investing – a pre-requisite to make money in this volatile environment.

More Gains Ahead?

Currently, REGL has a Zacks ETF Rank #3 (Hold). The fund has a positive weighted alpha of 27.80. A positive weighted alpha hints at more gains.

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