For investors seeking momentum, SPDR S&P Bank ETF (KBE Quick QuoteKBE - Free Report) is probably on the radar. The fund just hit a 52-week high and is up 55.5% from its 52-week low price of $33.97/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:

KBE in Focus

SPDR S&P Bank ETF offers equal-weight exposure to 92 banking stocks by tracking the S&P Banks Select Industry Index. Regional banks dominate the portfolio with a 73.9% share, while diversified banks, commercial & residential mortgage finance, diversified financial services and asset management & custody banks take the remainder. The product charges 35 bps in annual fees (see: all the Financials ETFs here).

Why the Move?

The banking corner of the broad financial sector has been an area to watch lately, as investors started to dig into the undervalued area. The probability of Donald Trump returning to the White House has risen significantly and the bets over Fed rates cut in September also ramped up. Both are favorable for the banking sector. The robust second-quarter results of the banks also added to the strength.

More Gains Ahead?

Currently, KBE has a Zacks ETF Rank #2 (Buy), suggesting that the outperformance could continue in the months ahead. Many industries 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.