Investors seeking momentum may have Direxion Daily Financial Bull 3X Shares (FAS Quick QuoteFAS - Free Report) on radar now. The fund recently hit a new 52-week high. Shares of FAS are up approximately 104.1% from the 52-week low of $27.42/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.

FAS in Focus

FAS focuses on providing exposure to financials companies in the U.S. equity market. It charges 105 basis points in fee per year and has top holdings in Berkshire Hathaway Inc (BRK.B Quick QuoteBRK.B - Free Report) , JPMorgan Chase & Co (JPM Quick QuoteJPM - Free Report) and Wells Fargo & Co (WFC Quick QuoteWFC - Free Report) with 6.7%, 6.7% and 5.2% allocation, respectively (as of Jun 30, 2017) (see all Leveraged Equity ETFs here).

Why the Move?

Lately, the financial sector has been in the spotlight. There are renewed hopes of a tax reform, as Republican leaders unveiled a tax reform plan that aims at reducing tax rates for businesses and individuals. Moreover, investors are betting on another rate hike by the end of this year. President Donald Trump’s meeting with former Fed Governor Kevin Warsh as a likely candidate to replace Janet Yellen also drove financial stocks higher.

More Gains Ahead?

Zacks does not rank inverse and leveraged ETFs in view of their short term performance objectives. However, the ETF has an impressive weighted alpha of 80.31. So, there is a promising outlook ahead for those who want to ride this surging ETF a shade further.

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