For investors seeking momentum, VanEck Steel ETF (SLX Quick QuoteSLX - Free Report) is probably on the radar. The fund just hit a 52-week high and has risen 57.3% from its 52-week low of $51.69 per share.

But are more gains in store for this ETF? Let’s take a quick look at the fund and the near-term outlook to get a better idea of where it might head:

SLX in Focus

The underlying NYSE Arca Steel Index tracks the overall performance of companies involved in the steel sector. The product charges 56 bps in annual fees (See: All Materials ETFs).

Why the Move?

U.S. President Donald Trump’s latest proclamation, providing a two-year regulatory relief from the strict Biden-era EPA rule affecting coke oven facilities, a critical component of America’s steel production, serves as a significant tailwind for the fund.

Additionally, as risks of regulation-driven shutdowns ease despite ongoing challenges such as trade tensions and supply constraints, increasing exposure to the fund is a good option.

More Gains Ahead?

SXL might continue its strong performance in the near term, with a positive weighted alpha of 24.35 (as per Barchart.com), which gives cues of a further rally.