For investors seeking momentum, ProShares S&P 500 Ex-Technology ETF (SPXT Quick QuoteSPXT - Free Report) is probably on the radar. The fund just hit a 52-week high and is up 23.56% from its 52-week low price of $78/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:

SPXT in Focus

The underlying S&P 500 Ex-Information Technology Index provides exposure to the companies of the S&P 500 with the exception of those from the information technology sector. The product charges 9 bps in annual fees (See: All Large Cap Blend ETFs).

Why the Move?

Driven by concerns sparked by DeepSeek, a new AI app developed by a Chinese startup, the U.S. stock market saw $1 trillion being wiped out in market capitalization as investors pulled out of the tech sector. Nvidia’s market value dropped by approximately $589 billion, highlighting the importance of diversifying investments beyond the tech sector.

With the fund prioritizing investments in S&P 500 companies and shifting its focus away from tech, the DeepSeek-driven sell-off serves as a significant tailwind for its strategy.

More Gains Ahead?

Currently, SPXT 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 21.28 (as per Barchart.com), which gives cues of a further rally.