For investors looking for momentum, Dynamic Semiconductors Invesco ETF (PSI Quick QuotePSI - Free Report) is probably a suitable pick. The fund just hit a 52-week high and is up 177.2% from its 52-week low price of $44.68/share.

Let’s take a look at the fund and its near-term outlook to gain an insight into where it might be headed:

PSI in Focus

The underlying Dynamic Semiconductor Intellidex Index is comprised of stocks of semiconductor companies. The Index is designed to provide capital appreciation by thoroughly evaluating companies based on a variety of investment merit criteria, including fundamental growth, stock valuation, investment timeliness and risk factors. It has AUM of $472.8 million and charges 57 basis points in annual fees.

Why the Move?

The coronavirus pandemic has boosted the demand for digitization. Along with higher demand, scarcity of chips has been aiding shares of semiconductor companies. These companies are now in a position to charge higher for commodity chips like memory.

More Gains Ahead?

It seems like the fund will remain strong, with a positive weighted alpha of 94.28, which gives cues of further rally.

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