For investors seeking momentum, Invesco S&P 500 Ex-Rate Sensitive Low Volatility ETF (XRLV Quick QuoteXRLV - Free Report) is probably on radar now. The fund just hit a 52-week high and is up about 16.9% from its 52-week low price of $31.27/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:

XRLV in Focus

The underlying S&P 500 Low Volatility Rate Response Index is composed of the 100 constituents of S&P 500 Index that exhibit both low volatility and interest rate risk. Financials, Information Technology, Industrials and HealthCare have a double-digit exposure each. The fund charges 25 bps in fees (see: all large-cap ETFs here). 

Why the Move?

Though the U.S. market has been in great shape lately, demand for this low-volatility ETF has not diminished.  Since overvaluation in the equity market and chances of a Fed rate hike this month may cause considerable volatility, rally in low volatility and an ex-rate sensitive funds like XRLV is understandable.

More Gains Ahead?

The fund has a positive weighted alpha of 26.50. A positive weighted alpha hints at more gains. As a result, there is definitely still some promise for investors who want to ride on this surging ETF. 

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