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 63.4% from its 52-week low of $36.51 per share.

But are more gains in store for this ETF? Let us 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 ETF KBWB charges 35 bps in annual fees.

Why the Move?

The Fed is likely to cut rates in September. Since banks borrow money at short-term rates and lend capital at long-term rates, the steepening of the yield curve is always a plus for bank ETFs. On Friday, the spread between the 10-year and two-year treasury yield stood at zero versus negative 0.17 percentage points recorded at the start of the month, benefiting bank stocks and ETFs.

More Gains Ahead?

Currently, KBWB has a Zacks ETF Rank #3 (Hold) with a High risk outlook.  However, it might continue its strong performance in the near term, with a positive weighted alpha of 43.17, which gives cues of a further rally.