For investors looking for momentum, iShares U.S. Industrials ETF (IYJ Quick QuoteIYJ - Free Report) is probably a suitable pick. The fund just hit a 52-week high and is up about 101% from its 52-week low price of $50.97/share.

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

IYJ in Focus

The underlying Dow Jones U.S. Industrials Index measures the performance of the industrial sector of the U.S. equity market. It includes: construction & materials, aerospace & defense, general industrials, electronic & electrical equipment, industrial engineering, industrial transportation & support services. The Index is capitalization-weighted. It charges 42 bps in fees (see all industrials ETFs here)

Why the Move?

U.S. manufacturing activity rose to a three-year high in February due to a considerable rise in new orders. The ISM Manufacturing PMI surged to 60.8 in February of 2021 from 58.7 in January, beating market expectations of 58.8. Such stellar reading probably has boosted the industrial ETFs.

More Gains Ahead?

It seems like the fund will remain strong in the near term, with a positive weighted alpha of 43.45, which gives cues of further rally. Operating backdrop is also in favor of the fund.

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