For investors seeking momentum, VanEck Vectors Biotech ETF (BBH Quick QuoteBBH - Free Report) is probably on radar. The fund just hit a 52-week high and is up about 33.4% from its 52-week low price of $112.03/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:

BBH in Focus

BBH focuses on the biotechnology segment of the U.S. market and measures the performance of companies involved in the development and production, marketing and sales of drugs based on genetic analysis and diagnostic equipment. The fund has a large-cap focus with key holdings in Amgen (AMGN Quick QuoteAMGN - Free Report) and Gilead Sciences (GILD Quick QuoteGILD - Free Report) . It charges investors 35 basis points a year in fees (see: all the Healthcare ETFs here).

Why the Move?

The biotech corner of the broad healthcare sector has been an area to watch lately given the deadly coronavirus, which has infected more than 2.4 million people globally and nearly 166,000 deaths. This has opened new doors for biotech companies to discover and create vaccines and treatments related to the COVID-19 pandemic. In particular, Gilead Sciences and Amgen — the two biggest holdings of BBH — have been on the forefront, making the ETF extremely hot.

More Gains Ahead?

Currently, BBH has a Zacks ETF Rank #2 (Buy) with a Medium risk outlook, suggesting continued outperformance in the months ahead. Further, 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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