For investors looking for momentum, First Trust NASDAQ Semiconductor ETF (FTXL Quick QuoteFTXL - Free Report) is probably a suitable pick. The fund just hit a 52-week high — up roughly 115.3% from its 52-week low of $27.47/share.

Does it have more gains in store? Let’s take a look at the fund and its near-term outlook to gain an insight into where it might be headed:

FTXL in Focus

The underlying Nasdaq US Smart Semiconductor Index is a modified factor weighted index, designed to provide exposure to US companies within the semiconductor industry. The fund charges 60 bps in fees (see all Technology ETFs here).

Why the Move?

The global semiconductor industry is in a sweet spot now. Per the latest report from the World Semiconductor Trade Statistics (WSTS), global semiconductor market is expected to increase 5.1% year over year this year driven by memory and sensors. For 2021, growth is projected at 8.4% based on the solid growth of memory and optoelectronics. This piece of information sent this semiconductor ETF to a 52-week high.

More Gains Ahead?

The fund has a positive weighted alpha of 67.00, which gives cues of further rally.

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