For investors seeking momentum, FT Vest Buffered Allocation Defensive ETF (BUFT Quick QuoteBUFT - Free Report) is probably on the radar now. The fund just hit a 52-week high and is up 18.8% from its 52-week low price of $20.74 per share.  

But are there 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 head.

BUFT in Focus

It seeks to provide investors with returns (before fees and expenses) based on the price return of the SPDR S&P 500 ETF Trust, up to a predetermined cap. The fund charges 105 basis points (bps) in annual fees (See: all Defined Outcome ETFs here).

What Led to the Rise?

Investors are recently seeking products that protect against market downturns while still allowing participation in market gains, making BUFT an attractive option in volatile markets. Investors’ concerns about AI overvaluation and crowded mega cap tech trades have recently encouraged some investors to rotate toward buffered and defensive strategies, which might have led the BUFT fund to touch a 52-week high now.

More Gains Ahead?

BUFT may continue its strong performance in the near term, with a positive weighted alpha of 9.92 (as per Barchart.com), which suggests a further rally.