For investors seeking momentum, Invesco S&P SmallCap Information Technology ETF (PSCT Quick QuotePSCT - Free Report) is probably on the radar. The fund just hit a 52-week high and is up 84.32% from its 52-week low price of $33.16/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:

PSCT in Focus

The S&P SmallCap 600 Capped Information Technology Index measures the overall performance of common stocks of U.S. information technology companies. The product charges 29 bps in annual fees (see: all the Technology ETFs here).

Why the Move?

Investors are showing renewed interest in the technology sector, driven by robust corporate profits and the ongoing momentum in the tech sector. Additionally, improving consumer confidence and interest rate cuts by the Fed also paint an optimistic picture for the sector. Given that the tech sector relies heavily on borrowing to accelerate growth, lower interest rates create a cost-effective environment for obtaining additional funds to support further initiatives.

Also, the recent surge in the small-cap market space, supported by the AI-led momentum in the tech sector, is a key tailwind for the fund.

More Gains Ahead?

Currently, PSCT has a Zacks ETF Rank #2 (Buy) and it might continue its strong performance given a positive weighted alpha of 42.85 (as per Barchart.com).