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Retail ETF (XRT) Hits New 52-Week High

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Investors seeking momentum may have SPDR SP Retail ETF (XRT - Free Report) on radar now. The fund recently hit a new 52-week high. Shares of XRT are up approximately 105.5% from their 52-week low of $26.29/share.

But could there be more gains ahead for this ETF? Let’s take a look at the fund and the near-term outlook to get a better idea of where it might be headed.

XRT in Focus

The underlying S&P Retail Select Industry Index represents the retail sub-industry portion of the S&P TMI. The S&P TMI tracks all the U.S. common stocks listed on the NYSE, AMEX, NASDAQ National Market and NASDAQ Small Cap exchanges. The Retail Index is a modified equal weight index. XRT charges investors 35 basis points in fee per year (see all Consumer Discretionary ETFs here).

Why the move?

Strong hopes for congressional stimulus to boost the economy as the coronavirus pandemic continues to hamper the Great Reopening. Even afterwalking out on the stimulus talks, U.S. President Donald Trump has been seeking some much-needed aid approvals from Congress.

Among the most-necessary ones, Trump wants an extension in the $25 billion in new payroll assistance to U.S. passenger airlines and an approval of a stand-alone bill that would allow a second round of $1,200 checks.

Both Democrats and Republicans have shown support for such aids, though it is still not clear if these proposals could be passed before the election. Another round of stimulus checks means a rally in retail stocks.

More Gains Ahead?

Currently, XRT has a Zacks ETF Rank #2 (Buy) with a Medium risk outlook. So, it is difficult to get a handle on its future returns one way or another. The fund has a weighted alpha of 34.90. So, there is a decent outlook ahead for those who want to ride this surging ETF a shade further.

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