For investors seeking momentum, iShares MSCI Sweden ETF (EWD Quick QuoteEWD - Free Report) is probably on the radar. The fund just hit a 52-week high and moved up 22.09% from its 52-week low price of $30.68/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:

EWD in Focus

The underlying MSCI Sweden 25/50 Index consists of stocks traded primarily on the Stockholm Stock Exchange. The fund has major exposure in the industrial sector, with an allocation of 47.61% of its assets, followed by the financial (21.65%) and information technology sector (7.64%). The product charges 54 bps in annual fees (See: all European Equity ETFs).

Why the Move?

After Sweden’s economy contracted this year by 0.25%, Danske Bank’s optimistic outlook for Sweden’s economy next year, is a tailwind. The bank estimates the European country to grow 1.3%, driven by robust manufacturing investments, stable consumer spending and a steady retail sales figure. The increasing probability of the Swedish central bank reducing its interest rates next year is another key tailwind for the fund.

More Gains Ahead?

Currently, EWD has a Zacks ETF Rank #3 (Hold) with a Medium risk outlook. However, it might continue its strong performance in the near term, with a positive weighted alpha of 13.3, which gives cues to a further rally.