For investors seeking momentum, Smallcap Growth Alphadex Fund First Trust (FYC Quick QuoteFYC - Free Report) is probably on the radar. The fund just hit a 52-week high and is up 44.91% from its 52-week low price of $51.39/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:

FYC ETF in Focus

The underlying NASDAQ AlphaDEX Small Cap Growth Index is an enhanced which employs the AlphaDEX stock selection methodology to select stocks from the NASDAQ US 700 Small Cap Growth Index. The product charges 70 bps in annual fees.

Why the Move?

Things are taking a turn for the better for the pint-sized stocks. Upbeat earnings and cheaper valuation augur well for the pint-sized stocks. Since the small-caps are more domestically-focused and do not have much foreign exposure, these are faring better on releases of decent U.S. economic indicators. The latest Fed rate cut is another positive.

More Gains Ahead?

Currently, FYC has a Zacks ETF Rank #3 (Hold). However, it might continue its strong performance in the near term, with a positive weighted alpha of 32.71, which gives cues of a further rally.