Investors seeking momentum may have SPDR S&P Biotech ETF (XBI Quick QuoteXBI - Free Report)  on radar now. The fund recently hit a new 52-week high. Shares of XBI are up approximately 109% from their 52-week low of $62.94/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.

XBI in Focus

The underlying S&P Biotechnology Select Industry Index represents the biotechnology sub-industry portion of the S&P Total Markets Index. 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 Biotech Index is a modified equal weight index. It charges 35 bps in fees (see all Health Care ETFs here).

Why the Move?

Shares of biotech companies rallied on back-to-back upbeat vaccine news. While Pfizer (PFE Quick QuotePFE - Free Report) and Moderna (MRNA Quick QuoteMRNA - Free Report) already charged up markets with their success in COVID-19 vaccines in clinical trials, AstraZeneca (AZN Quick QuoteAZN - Free Report) said on Nov 23 that its vaccine, developed in collaboration with the University of Oxford, showed an average 70% effectiveness. Plus, Sanofi (SNY) and GlaxoSmithKline's (GSK) as well as Johnson & Johnson (JNJ) are also working hard in the COVID-19 vaccine field.

More Gains Ahead?

The fund has a positive weighted alpha of 49.50. So, there is a decent outlook ahead for those who want to ride this surging ETF a shade further.

Want key ETF info delivered straight to your inbox?

Zacks’ free Fund Newsletter will brief you on top news and analysis, as well as top-performing ETFs, each week. Get it free >>