For investors seeking momentum, IShares S&P 100 ETF (OEF Quick QuoteOEF - Free Report) is probably on radar. The fund just hit a 52-week high and is up 25.94% from its 52-week low price of $157.57/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:

OEF in Focus

The underlying S&P 100 Index measures the performance of the large-capitalization sector of the U.S. equity market. It is a subset of the S&P 500, designed to measure the performance of large-cap companies in the United States. It comprises 100 major blue-chip companies across various industries. The product charges 20 bps in annual fees (See: all the Large Cap Blend ETF here).

Why the Move?

Positive sentiment in the stock market was buoyed by the expectation that lawmakers will successfully pass the legislative measure before the X-date of Jun 5. This rally was also driven by promising indications of diminishing wage pressure, leading to increased optimism that the Federal Reserve may temporarily halt its interest rate hikes.

Throughout May, the markets experienced an upward trend in the technology sector, fueled by the enthusiasm surrounding AI. Additionally, investors’ preference for mega-cap stocks, better positioned to withstand an economic downturn, led to the concentration of market gains in a select few companies, namely Apple, Alphabet and Amazon.

More Gains Ahead?

Currently, OEF has a Zacks ETF Rank #3 (Hold). However, it might continue its strong performance given a positive weighted alpha of 11.40.