For investors seeking momentum, iShares U.S. Industrials ETF (IYJ Quick QuoteIYJ - Free Report) is probably on the radar. The fund just hit a 52-week high and is up 34.7% from its 52-week low price of $95.00/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:

IYJ in Focus

iShares U.S. Industrials ETF offers exposure to U.S. companies that produce goods used in construction and manufacturing. It has key holdings in capital goods and financial services. iShares U.S. Industrials ETF charges 40 basis points in annual fees (see: all the Financials ETFs here).

Why the Move?

The industrial corner of the broad U.S. stock market has been an area to watch, given the increased bet for rate cuts in September. Lower rates lead to reduced borrowing costs for mortgages, credit cards and other consumer and business loans. This helps businesses to expand their operations more easily, resulting in increased profitability.

More Gains Ahead?

Currently, IYJ has a Zacks ETF Rank #2 (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.