Investors seeking momentum may have First Trust NASDAQ Bank ETF (FTXO Quick QuoteFTXO - Free Report) on radar now. The fund recently hit a new 52-week high. Shares of FTXO are up approximately 150.1% from their 52-week low of $13.37/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.

FTXO in Focus

The underlying Nasdaq US Smart Banks Index is a modified factor weighted index, designed to provide exposure to US companies within the banking industry. The expense ratio is 0.60% (see all Financials ETFs here).

Why the Move?

The banking sector has been gaining attention lately thanks to the steepening of the yield curve. U.S. benchmark treasury yield was 1.71% on Mar 18, 2021, up 8 bps noted on Mar 17, 2021. This explains the jump in banking ETFs like FTXO. Biden’s fiscal stimulus and wider coverage of vaccination has basically boosted cyclical and value segments like banking in the recent past.

More Gains Ahead?

The fund has a Zacks ETF Rank #2 (Buy). The fund has a positive weighted alpha of 123.30. So, there is a decent outlook ahead for those who want to ride this surging ETF a shade further.

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