For investors seeking momentum, Invesco KBW Bank ETF (KBWB Quick QuoteKBWB - Free Report) is probably on the radar. The fund just hit a 52-week high and is up 42.3% from its 52-week low price of $65.40/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.

KBWB in Focus

The underlying KBW Nasdaq Bank index is a modified-market capitalization-weighted index that seeks to reflect the performance of companies that do business as banks or thrifts that are publicly-traded in the United States. The product charges 35 bps in annual fees.

Why the Move?

The banking sector of the market has been an area to watch lately, given the optimistic development around the ceasefire agreement. President Trump recently signaled a de-escalation in hostilities, calling off planned strikes and pointing to progress in negotiations with Iran.

Also, the United States announced late Sunday that a ceasefire deal with Iran has been reached, with President Trump calling the agreement "complete" in a post to Truth Social, as quoted on Yahoo Finance. Also, the likelihood of mega IPOs in the near term has strengthened the outlook for banks' underwriting fee income.

More Gains Ahead?

Currently, KBWB has a Zacks ETF Rank #3 (Hold) with a High risk outlook. It might continue its strong performance in the near term, with a positive weighted alpha of 39.35 (as per Barchart.com), which gives cues of a further rally.