Vanguard Dividend Appreciation ETF (VIG Quick QuoteVIG - Free Report) is probably on the radar for investors seeking momentum. The fund just hit a 52-week high and has moved up 29.44% from its 52-week low price of $149.67/share.

Are more gains in store for this ETF? Let us take a quick look at the fund and the near-term outlook on it to get a better idea of where it might be headed.

VIG in Focus

The underlying S&P U.S. Dividend Growers Index consists of common stocks of companies that have a record of increasing dividends over time. The fund has a dividend yield of 1.73%. The product charges 6 bps in annual fees (see: all Large Cap Blend ETFs).

Why the Move?

The dividend space of the market has been an area to watch lately, given rising geopolitical tensions in the Middle East, coupled with uncertainty over U.S. Presidential elections. Dividend investing is an appealing strategy because it provides both security through regular payouts and stability by focusing on mature companies that are less prone to significant price fluctuations. Dividend-paying stocks are a reliable source of income, especially when returns from equity markets are uncertain.

More Gains Ahead?

Currently, VIG has a Zacks ETF Rank #2 (Buy) with a Medium risk outlook. It might continue its strong performance in the near term, with a positive weighted alpha of 21.90 (per Barchart.com), which gives cues of a further rally.