For investors seeking momentum, Fidelity Low Volatility Factor ETF (FDLO Quick QuoteFDLO - Free Report) is probably on the radar. The fund just hit a 52-week high and has risen 16.46% from its 52-week low price of $63.36/share.

But are there more gains in store for this ETF? Let’s take a quick look at the fund and the near-term outlook to get a better idea of where it might head:

FDLO in Focus

The underlying Fidelity U.S. Low Volatility Factor Index reflects the performance of stocks of large and mid-capitalization U.S. companies with lower volatility than the broader market. The product charges 15 bps in annual fees (See: All Large Cap Blend ETFs).

Why the Move?

With economic uncertainty rising and geopolitical tensions persisting, investors are increasingly turning to defensive strategies, bringing low-volatility funds into focus. Persistent inflationary pressures and expectations of a more hawkish Fed could further strengthen the case for these funds.

Low-volatility ETFs seek to provide a smoother investment experience by focusing on stocks that historically exhibit lower levels of market volatility. This makes them attractive for investors looking to balance market exposure with downside protection.

More Gains Ahead?

FDLO might continue its strong performance in the near term, with a positive weighted alpha of 13.86 (as per Barchart.com), which gives cues of a further rally.