US Financials Ishares ETF (IYF Quick QuoteIYF - Free Report) is probably on the radar for investors seeking momentum. The fund just hit a 52-week high and moved up 28.41% from its 52-week low price of $66.91/share.

Are more gains in store for this ETF? Let us 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.

IYF in Focus

The Russell 1000 Financials 40 Act 15/22.5 Daily Capped Index measures the performance of the financial sector of the U.S. equity market. The product charges 40 bps in annual fees (see: all Financials ETFs).

Why the Move?

The financial sector has been an area to watch lately, given that the Fed takes a dovish approach. Moderating inflation levels and the Fed adopting a dovish stance with estimates of interest rate cuts in 2024, make the yield curve steeper. A steepening yield curve is great for bank stocks as the pattern boosts banks’ net interest rate margins.

More Gains Ahead?

Currently, IYF has a Zacks ETF Rank #3 (Hold) and a Medium risk outlook. However, it might continue its strong performance in the near term, with a positive weighted alpha of 14.70, which gives cues of a further rally.