Investors seeking momentum may have iShares U.S. Medical Devices ETF (IHI Quick QuoteIHI - Free Report) on radar now. The fund recently hit a new 52-week high. Shares of IHI are up approximately 72.6% from their 52-week low of $183.25/share.

But could there be more gains ahead for this ETF? Let’s take a look at the fund and the near-term outlook to get a better idea of where it might be headed.

IHI in Focus

The underlying Dow Jones U.S. Select Medical Equipment Index measures the performance of the medical equipment sector of the U.S. equity market. The fund charges investors 42 basis points in fee per year (see all Healthcare ETFs here).

Why the move?

The fund is probably an election beneficiary. Democratic nominee Joe Biden intends to expand Medicaid and Medicare while protecting the ACA.Per Chantico Global CEO Gina Sanchez, Biden wants to increase equipment manufacturing, to increase testing and tracing, and all the procedures that are tied with Covid. Since Biden has considerable chances of winning, this medical devices ETF hit a 52-week high.

More Gains Ahead?

The fund has a positive weighted alpha of 32.60. So, there is a decent outlook ahead for those who want to ride this surging ETF a shade further.

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