For investors seeking momentum, First Trust Dow Jones International Internet ETF (FDNI Quick QuoteFDNI - Free Report)  is probably on radar. The fund just hit a 52-week high and is up 46.9% from its 52-week low price of $19.28/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 on where it might be headed:

FDNI in Focus

The underlying Dow Jones International Internet Index is a float-adjusted market capitalization weighted index designed to measure the performance of the 40 largest and most actively traded non U.S. international companies in the Internet industry that are engaged in internet commerce and internet services. The fund charges 65 bps in fees (see: all technology ETFs here).

Why the Move?

Internet stocks globally have rallied amid the coronavirus-led lockdowns as these have less to do with human contact. The coronavirus scare also favored the online retailing industry as lockdowns boosted demand for online shopping and other kinds of Internet activities.

Social distancing also compelled people to stay at home and work as well as learn from home. This new lifestyle has also benefited various corners of the technology sector, ranging from enterprise cloud computing, cyber security, and remote communications.

More Gains Ahead?

Currently, FDNI has a positive weighted alpha of 34.10. So, there is a decent outlook ahead for those who want to ride this surging ETF a shade further.

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