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For investors seeking momentum, Global X Social Media Index ETF (SOCL - Free Report) is probably on radar now. The fund just hit a 52-week high, and is up about 62% from its 52-week low price of $15.55/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 on where it might be headed:

SOCL in Focus    

This fund provides pure play access to social media companies around the world with a tilt toward large-cap stocks. It definitely has a concentration issue as the top four firms – Twitter (TWTR - Free Report) , Tencent Holdings, Facebook (FB - Free Report) and LinkedIn – dominate the fund’s return at 38.7% share. The fund charges investors 65 basis points a year in fees (see: all the Technology ETFs here).

Why the Move?

The social media space has been an area to watch lately given rumors that Twitter is an acquisition target for (CRM - Free Report) and Alphabet’s (GOOGL - Free Report) Google. This resulted in Twitter’s shares surging 21%, reflecting the biggest one-day ever jump. Investors should note that Twitter is the top firm of SOCL, making up for around 10.7% allocation. Hence, the rally translated into the ETF as well.

More Gains Ahead?

Currently, SOCL has a Zacks ETF Rank of 3 or ‘Hold’ rating with a High risk outlook, so it is hard to get a handle on its future returns one way or the other. However, since many of the segments that make up this ETF have a strong Zacks Industry Rank, there is definitely still some promise for those who want to ride on this surging ETF a little longer.

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