For investors seeking momentum, VanEck Vectors CEF Municipal Income ETF (XMPT Quick QuoteXMPT - Free Report) is probably on radar now. The fund just hit a 52-week high, which is up roughly 14.2% from its 52-week low price of $23.01/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:

XMPT in Focus

The 64-security fund looks to track the S-Network Municipal Bond Closed-End Fund Index, which measures the performance of the U.S.-listed closed-end funds that invest in U.S. dollar denominated tax-exempt market. The expense ratio of the fund is 1.56% (see all Municipal Bond ETFs here).

Why the Move?

Demand for muni bonds has stayed strong as taxpayers of seven states have not been benefited that much from the tax overhaul. Also, a dovish Fed has kept rates at a subdued level. This in turn veered investors toward this muni bond ETF, which yields 4.39% annually. Plus, tax-advantage is an added benefit for this segment. 

More Gains Ahead?

The fund has a Zacks Rank #4 (Sell). But it has a positive weighted alpha of 6.70, which hints at more gains. So, there is definitely still some promise for those who want to ride on this ETF a little longer.

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