For investors seeking momentum, State Street SPDR S&P Regional Banking ETF KRE is probably on the radar. The fund just hit a 52-week high and rose 43.3% from its 52-week low price of $47.06/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:

KRE in Focus

The underlying S&P Regional Banks Select Industry Index represents the regional banks segment of the S&P Total Market Index. The product charges 35 bps in annual fees (See all Financials ETFs here).

Why the Move?

The Fed is likely to cut rates in the near term, which may boost the risk-on trade sentiments and push up long-term rates. Since banks borrow money at short-term rates and lend capital at long-term rates, the steepening of the yield curve is always a plus for bank ETFs.

More Gains Ahead?

Currently, KRE 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 10.45 (as per Barchart.com), which gives cues of a further rally.