For investors seeking momentum, the iShares U.S. Home Construction ETF (ITB - ETF report)) is probably on their radar now. The fund just hit a 52-week high, and shares of ITB are up roughly 35.1% from their 52-week low price of $21.22/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:

ITB in Focus    

ITB offers pure play exposure to 41 home construction stocks. It has a definite tilt toward mid caps with key holdings in homebuilding and building products segments. The fund charges investors 45 basis points a year in fees and is largely concentrated on the top two firms – D.R. Horton (DHI) and Lennar (LEN) – with over 11% of ITB each (see: all the Materials ETFs here).

Why the Move?

The housing sector has been an area to watch lately as encouraging housing numbers coupled with strengthening economic recovery and an accelerating job market point to much healthier growth. This reflects consumers’ willingness to buy more homes and hence make the home-builder segment a great space to stay invested in.

More Gains Ahead?

Currently, ITB has a Zacks ETF Rank #3 (Hold) so it is hard to get a handle on its future returns in one way or another. However, many of the segments that make up this ETF have strong Zacks Industry Ranks, so there is definitely still some promise for those who want to ride on this surging ETF a little further.