For investors seeking momentum, iShares MSCI Italy ETF (EWI Quick QuoteEWI - Free Report) is probably on the radar. The fund just hit a 52-week high and is up 31.62% from its 52-week low price of $45.79/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:

EWI in Focus

The underlying MSCI Italy 25/50 Index measures the equity market performance in Italy. The fund has major allocations to financials (50.11%), utilities (18.01%) and consumer discretionary (9.63%). The product charges 50 bps in annual fees (see: all the European Equity ETFs here).

Why the Move?

Industrial production in Italy rose 0.5% in April on a month-over-month basis, coming in above expectations and showing signs of economic recovery. This marked the third consecutive monthly gain, suggesting that the manufacturing sector may be emerging from a prolonged slump and strengthening the case for increased exposure to Italy-focused funds.

More Gains Ahead?

Currently, EWI has a Zacks ETF Rank #3 (Hold) with a Medium risk outlook. It might continue its strong performance in the near term, with a positive weighted alpha of 25.47 (as per Barchart.com), which gives cues of a further rally.