For investors seeking momentum, ProShares High Yield—Interest Rate Hedged ETF (HYHG Quick QuoteHYHG - Free Report) is probably on the radar. The fund just hit a 52-week high and has gained 6.6% from its 52-week low of $61.49 per 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:

HYHG in Focus

ProShares High Yield—Interest Rate Hedged ETF provides the return potential of a diversified portfolio of high-yield corporate bonds. It targets zero interest rate risk by including a built-in hedge against rising rates that use short positions in U.S. Treasury futures. HYHG charges 50 bps in fees per year (see: all the High-Yield/Junk Bond ETFs here).

Why the Move?

The high-yield hedged corner of the broad market has been an area to watch lately, given the surge in Treasury yields. The 10-year yields logged their biggest four-year gain since the end of 1981 on concerns that President-elect Trump's policies may cause inflationary pressure in 2025 that would slow down the pace of Fed rate cuts.

More Gains Ahead?

HYHG might remain strong, given a weighted alpha of 4.4 and a lower 20-day volatility of 3.29%. There is definitely still some promise for investors who want to ride on this surging ETF.