For investors looking for momentum, SPDR S&P International Financial Sector ETF is probably on radar now. The fund just hit a 52-week high, and shares of IPF are up roughly 51.8% from their 52-week low price of $15.98/share.

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

IPF in Focus

The fund looks to track the S&P Developed Ex-U.S. BMI Financials Sector Index. The fund has a double-digit weight in United Kingdom (15.3%), Canada (14.0%), Japan (13.2%) and Australia (10.7%). Banks take the top spot in the fund with about 59% exposure followed by Insurance (24.2%). It charges 40 bps in fees (see all Financials ETFs here).

Why the Move?

In late June, Mario Draghi said that the ECB could modify its sub-zero interest rates and huge bond purchase program as the economy is on the mend. Lower inflation issues are being viewed as short-lived by Draghi. German bond yields logged the biggest weekly jump last week since 2015. Not only this, Bank of England has also started mulling over policy tightening.

Fed chief Yellen also recently made it clear that the Fed’s gradual policy tightening and reduction of its $4.5 trillion balance sheet will remain on course. Since financial stocks benefit from a rising rate environment, this international sector ETF has surged lately.

More Gains Ahead?

The fund has a positive weighted alpha of 50.60. A positive weighted alpha hints at more gains. As a result, there is definitely some promise for investors who want to ride on this surging ETF.

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