WisdomTree U.S. SmallCap ETF (EES Quick QuoteEES - Free Report) is probably on the radar for investors seeking momentum. The fund just hit a 52-week high and moved up 33.23% from its 52-week low price of $39.96/share.

Are more gains in store for this ETF? Let us 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.

EES in Focus

The underlying WisdomTree U.S. SmallCap Index is a fundamentally weighted index that measures the performance of earnings-generating companies within the small-capitalization segment of the U.S. stock market. The fund has double-digit exposure to financials (27.91%), industrials (16.38%) and consumer discretionary (16.04%). The product charges 38 bps in annual fees (see: all Small Cap Value ETFs).

Why the Move?

The small-cap segment of the market has been an area to watch, given the faster-than-expected growth of the U.S. economy in second-quarter 2024, driven by solid consumer spending and higher business investment. With small-cap stocks being closely tied with the U.S. economy and earning revenues primarily from the domestic market, a growing U.S. economy bodes well for the fund.

More Gains Ahead?

Currently, EES has a Zacks ETF Rank #3 (Hold) and Medium risk outlook. However, it might continue its strong performance in the near term, with a positive weighted alpha of 17.42 (as per Barchart.com), which gives cues of a further rally.