For investors seeking momentum, SPDR S&P 500 Buyback ETF is probably on radar now. The fund just hit a 52-week high, and is up 21.7% from its 52-week low price of $51.33/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 on where it might be headed:

SPYB in Focus    

This fund focuses on the 101 top companies in the S&P 500 with the highest buyback ratio in the last 12 months. It has key holdings in financials, consumer discretionary, information technology, and healthcare. The product charges 35 bps in annual fees from investors (see: all the Large Cap ETFs here).

Why the Move?

The buyback corner of the broad investing world has been an area to watch lately given that the biggest tax overhaul in three decades would benefit buyback ETFs. This is because lower corporate taxes would boost companies’ profitability and in turn increase shareholders’ wealth in the form of buybacks. That said, S&P 500 share repurchases increased 7.5% in the third quarter from the second quarter this year and 15.2% from the year-ago quarter.

More Gains Ahead?

It seems that SPYB might remain strong given a high weighted alpha of 19.80% and a low 20-day volatility of 10.78%. As a result, there is definitely still some promise for investors who want to ride on this surging ETF a little further.

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