For investors seeking momentum, First Trust Institutional Preferred Securities and Income ETF ((FPEI Quick QuoteFPEI - Free Report) ) is probably on the radar now. The fund just hit a 52-week high and is up 9.5% from its 52-week low price of $17.81 per share.

But are more gains in store for this ETF? Let’s take a quick look at the fund and its near-term outlook to get a better sense of where it might be headed.

FPEI in Focus

It is an actively managed exchange-traded fund that provides exposure to institutional preferred securities and income-producing debt securities. The product charges 85 basis points (bps) in annual fees (See: All Convertibles/CEFs/OET/Preferred Stock ETFs here).

What Led to the Rise?

A lower interest rate environment boosts the market value of fixed-income securities like those held by FPEI. The recent interest rate cuts and expectations of a dovish monetary policy in the United States must have boosted prices of preferred securities and income-producing debt, which, in turn, might have resulted in a fresh 52-week high for FPEI.

More Gains Ahead?

FPEI may continue its strong performance in the near term, with a positive weighted alpha of 4.00 (as per Barchart.com), which suggests a further rally.