For investors seeking momentum, Virtus LifeSci Biotech Clinical Trials ETF (BBC Quick QuoteBBC - Free Report) is probably on the radar. The fund just hit a 52-week high and rose 181.9% from its 52-week low price of $13.42/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:

BBC in Focus

The LifeSci Biotechnology Clinical Trials Index is an equal weighted index that is designed to measure the equity market performance of the common stock of U.S. exchange-listed biotechnology companies with a primary product offering that is in a Phase 1, Phase 2 or Phase 3 clinical trial stage of development. The product charges 79 bps in annual fees (See: All Health Care ETFs).

Why the Move?

The biotech market has regained momentum lately, driven by favorable regulatory developments and cheaper valuations. The Fed’s rate cuts have also improved funding conditions, and the increasing adoption of AI in U.S. healthcare continues to provide a meaningful tailwind for the sector.

More Gains Ahead?

Currently, BBC has a Zacks ETF Rank #3 (Hold) with a High risk outlook. However, it might continue its strong performance in the near term, with a positive weighted alpha of 76.63 (as per Barchart.com), which gives cues of a further rally.