Investors seeking momentum may have iShares U.S. Pharmaceuticals ETF (IHE Quick QuoteIHE - Free Report) on radar now. The fund recently hit a new 52-week high. Shares of IHE are up approximately 18.0% from their 52-week low of $166.99/share.

But could there be more gains ahead for this ETF? Let’s take a look at the fund and the near-term outlook to get a better idea of where it might be headed.

IHE In Focus

The underlying Dow Jones U.S. Select Pharmaceuticals Index is free-float adjusted market capitalization-weighted index. It includes pharmaceutical companies such as manufacturers of prescription or over-the-counter drugs or vaccines, but excludes producers of vitamins. The fund charges 40 bps in fees.

Why The Move?

The healthcare sector is a foundation of any economy, providing essential services irrespective of market conditions. From pharmaceutical giants developing life-saving drugs to companies advancing medical technologies, the healthcare sector offers a breadth of investment opportunities.

Amid ongoing challenges about the geopolitical risks and the uncertainty about the timing of the likely Fed rate cuts, this healthcare ETF offers value and safe proposition.

More Gains Ahead?

The fund has a positive weighted alpha of 10.30. So, there is a decent outlook ahead for those who want to ride this surging ETF a shade further.