For investors seeking momentum, First Trust NASDAQ Global Auto ETF (CARZ Quick QuoteCARZ - Free Report) is probably on radar now. The fund just hit a 52-week high and is up around 17% from its 52-week low price of $32.57/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:

CARZ in Focus

This fund offers a pure play global exposure to auto stocks. It is a large-cap centric fund with higher exposure to the top five firms at over 7% share each while the other firms hold no more than 4.14% of assets. In terms of country exposure, Japan takes the top spot at 34.9% while the U.S. and Germany round off the next two spots with 22.4% and 18.4% share, respectively. CARZ has a lower level of $17.1 million in AUM and charges 70 bps in fees per year (see: all the Consumer Discretionary ETFs here).

Why the Move?

The auto sector has been an area to watch lately given that Hurricane Harvey is expected to provide a boost to auto sales due to higher replacing demand for the damaged vehicles. Cox Automotive, the parent company of Kelley Blue Book, estimates that 300,000-500,000 vehicles will have to be replaced because of Harvey. Higher demand will also help to kill excess inventory in the space, as automakers will move them to Houston. The biggest beneficiaries will be the makers of pickup trucks and SUVs, the most popular vehicles in the region.

More Gains Ahead?

Currently, CARZ has a Zacks ETF Rank #2 (Buy) with a High risk outlook, suggesting that the outperformance could continue for months. Further, many of the segments that make up this ETF have a strong Zacks Industry Rank, so there is definitely still some promise for those who want to ride on this surging ETF a little longer.

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