For investors looking for momentum, First Trust Nasdaq Pharmaceuticals ETF (FTXH Quick QuoteFTXH - Free Report) is probably a suitable pick. The fund just hit a 52-week high and is up 53.7% from its 52-week low price of $16.28/share.

Let’s take a look at the fund and its near-term outlook to gain an insight into where it might be headed:

FTXH in Focus

The fund seeks investment results that correspond generally to the price and yield, before fees and expenses, of the Nasdaq US Smart Pharmaceuticals Index. It has AUM of $15.5 million and charges expense ratio of 60 basis points.

Why the Move?

The coronavirus outbreak continues to aggravate in the United States and globally. In fact, the United Kingdom is seeing a rise in infections and the government is considering another national lockdown to control the situation, per a CNBC article. In such a scenario, all eyes are on the progress in the development of a coronavirus vaccine, treatment or test. Along with positive developments in coronavirus vaccine and antibodies, there have been news of mergers and acquisitions in the sector as well. This is making funds like FTXH an attractive investment option.

More Gains Ahead?

It seems like the fund will remain strong, with a positive weighted alpha of 14.90, which gives cues of further rally.

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