For investors looking for momentum, First Trust Nasdaq Semiconductor ETF (FTXL Quick QuoteFTXL - Free Report) is 60.7% from its 52-week low price of $44.86/share.

Let’s take a look at the fund and its near-term outlook to gain an insight into where it might be headed:

FTXL in Focus

The fund seeks investment results that correspond generally to the price and yield, before the fund's fees and expenses, of an index called the Nasdaq US Smart Semiconductor Index. It has AUM of $78.1 million and charges 60 basis points in annual fees.

Why the Move?

The semiconductor segment of the broad U.S. stock market has been witnessing a surge in chips demand amid a global shortage. Further, the semiconductor space has been gaining from expanding digitization and growing dependency on the Internet owing to some new normal trends like online shopping, work from home, digital payments, digitization of healthcare, rising demand for video gaming and many more.

More Gains Ahead?

It seems like the fund will remain strong, with a positive weighted alpha of 49.57, which gives cues of further rally.