For investors seeking momentum, MicroSectors FANG+ ETN (FNGS Quick QuoteFNGS - Free Report) is probably on radar. The fund just hit a 52-week high and is up 55% from its 52-week low price of $17.82/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 of where it might be headed:

FNGS in Focus

MicroSectors FANG+ ETN is linked to the performance of the NYSE FANG+ Index, which is an equal-dollar weighted index designed to provide exposure to a group of highly traded growth stocks of next-generation technology and tech-enabled companies. It holds 10 equal-weighted stocks in its basket and charges 58 bps in annual fees. (see: all the Active Non-Transparent ETFs here).

Why the Move?

The big-tech corner of the broad technology sector has been an area to watch lately, given the return of the appeal for the tech stocks. The combination of easing inflation, upbeat corporate earnings, the regional bank crisis and the adoption of new-era technologies is driving the sector higher. A pause in interest rate increases is a positive sign for technology stocks. As the tech sector relies on borrowing for superior growth, it is cheaper to borrow more money for further initiatives when interest rates are low.

More Gains Ahead?

Currently, FNGS has a Zacks ETF Rank #3 (Hold). Therefore, it is hard to get a handle on its future returns one way or the other. However, many segments that make up this ETF have a strong Zacks Industry Rank. So, there is definitely some promise for those who want to ride this surging ETF a little further.