For investors seeking momentum, PowerShares KBW Regional Banking Portfolio (KBWR Quick QuoteKBWR - Free Report) is probably on radar now. The fund just hit a 52-week high and is up nearly 28.5% from its 52-week low price of $47.64/share.

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

KBWR in Focus         

This ETF tracks the KBW Nasdaq Regional Banking Index to provide exposure to the performance of about 50 mid-cap banking companies. East West Bancorp Inc, Cullen/Frost Bankers Inc and Signature Bank/New York NYare the top three stocks of the fund. The product charges 35 bps in net fees (see all Financials ETFs here).

Why the Move?        

The recent passage of the easing of the Dodd-Frank Actboosted the fund in recent trading. The focus of the law was to cut back on uncontrolled lending and avoid the situation where tax-payers' money is needed to bail out large financial institutions. But the new bill lowers the federal oversight of banks between $50 billion and $250 billion in assets, and “eases lending, capital and trading rules for smaller lenders,” per Reuters.

More Gains Ahead? 

The fund has a Zacks Rank #2 (Buy). Also, it seems that the fund will perform decently in the near term given a positive weighted alpha of 18.90. Some of the companies that make up this ETF come from a top-ranked Zacks industry.

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