For investors seeking momentum, First Trust US Equity Opportunities ETF (FPX Quick QuoteFPX - Free Report) is probably on radar. The fund just hit a 52-week high and is up 24.2% from its 52-week low price of $76.82/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:

FPX in Focus

The underlying IPOX-100 U.S. Index is a modified value-weighted price index measuring the performance of the top 100 companies ranked quarterly by market capitalization in the IPOX Composite U.S. Index. The IPOX Composite U.S. Index is a rules-based value-weighted index measuring the average performance of U.S. IPOs during their first 1,000 trading days. The product charges 60 bps in annual fees.

Why the Move?

The IPO market is waking up from a long slumber. Some of the recent IPOs, such as Mediterranean food chain Cava (CAVA) and online beauty-products retailer ODDITY Tech (ODD), had quite a successful public debut. With stocks surging to new highs and inflation starting to ease, investors are warming up to IPOs again. In the second quarter of 2023, 23 IPOs raised a combined $6.6 billion, marking the highest proceeds in six quarters, according to Renaissance.

More Gains Ahead?

Currently, FPX might continue its strong performance given a positive weighted alpha of 12.30.