For investors seeking momentum, iShares U.S. Technology ETF (IYW Quick QuoteIYW - Free Report) is probably on radar. The fund just hit a 52-week high and is up 60% from its 52-week low price of $72.09/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:

IYW in Focus

iShares Dow Jones US Technology ETF offers exposure to U.S. electronics, computer software and hardware, and informational technology companies. It charges 40 bps in annual fees. (see: all the Technology ETFs here).

Why the Move?

The technology sector has been an area to watch lately, given a decline in Treasury yields. Bets that the Fed is nearing the end of its interest rate hiking cycle have renewed confidence in the sector and particularly favored technology stocks. As the tech sector relies on borrowing for growth, it is cheaper to borrow more money for initiatives when interest rates are low.

More Gains Ahead?

Currently, IYW has a Zacks ETF Rank #1 (Strong Buy) with a Medium risk outlook, suggesting that the outperformance could continue in the months ahead. However, many spaces 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.