For investors seeking momentum, First Trust RBA American Industrial Renaissance ETF (AIRR Quick QuoteAIRR - Free Report) is probably on the radar. The fund just hit a 52-week high and is up 151% from its 52-week low price of $16.58/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:

AIRR in Focus

This ETF offers exposure to small and mid-cap securities in the industrial and community banking sectors by tracking the Richard Bernstein Advisors American Industrial Renaissance Index. It is home to well diversified 57 securities and charges 70 basis points in annual fees (see: all the Industrials ETFs here).

Why the Move?

The industrial segment of the broad market has been an area to watch lately as investors are rotating into cyclical sectors to cash in on the opportunity of an improving economy. As the cyclical sectors are tied closely to economic activities, these outperform when economic growth improves. With the continued progress in more COVID-19 vaccines, rapid vaccination rollout and further U.S. stimulus, the economy is on the mend and is on a speedy recovery path. The combination of factors has led to higher demand for all types of products and services in the economy. All these fundamentals have set the stage for a strong rally in the industrial stocks and ETFs for the near term.

More Gains Ahead?

Currently, AIRR has a Zacks ETF Rank #3 (Hold) with a High risk outlook. Therefore, it is hard to get a handle on its future returns one way or the other. However, many of the segments that make up this ETF have a strong Zacks Industry Rank. So, there is definitely some promise for those who want to ride this surging ETF a little further.

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