For investors seeking momentum, iShares Global Materials ETF (MXI Quick QuoteMXI - Free Report) is probably on the radar now. The fund just hit a 52-week high and is up 37.2% from its 52-week low price of $71.01 per share.  

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

MXI in Focus

It offers exposure to companies involved in the production of raw materials, including metals, chemicals and forestry products. The fund charges 39 basis points (bps) in annual fees (See: all Materials ETFs here).

What Led to the Rise?

Robust demand for industrial products and a generally bullish tone across cyclical sectors, driven by MXI’s exposure to major global miners and chemical giants benefiting from higher commodity prices and increased infrastructure spending, appear to have propelled the ETF to a new 52-week high. Additionally, its exposure to gold miners such as Newmont has likely provided further support backed by the recent rise in gold prices.

More Gains Ahead?

MXI may continue its strong performance in the near term, with a positive weighted alpha of 25.64 (as per Barchart.com), which suggests a further rally.