For investors looking for momentum, Consumer Staples Select Sector SPDR Fund (XLP Quick QuoteXLP - Free Report) is probably a suitable pick. The fund hit a 52-week high and is up 18.2% from its 52-week low price of $68.32/share.

Let’s take a look at the fund and its near-term outlook to gain an insight into where it might be headed:

XLP in Focus

The Consumer Staples Select Sector SPDRFund seeks to provide investment results that, before expenses, correspond generally to the price and yield performance of the Consumer Staples Select Sector Index. It has AUM of $16.50 billion and charges 10 basis points in annual fees.

Why the Move?

Market participants are not very upbeat about the current market scenario and the outlook ahead. The Russia-Ukraine war saga, high inflation levels, the Federal Reserve’s aggressive stance on rate hikes and resurging COVID-19 cases in China are keeping investors on edge, adding to the market gyrations this year. The consumer staples sector is known for its non-cyclical nature and acts as a safe haven during unstable market conditions. Moreover, like utility, consumer staples is considered a stable sector for the long term as its players are likely to offer decent returns. Investors can consider parking their money in the non-cyclical consumer staples sector during an economic recession. This is making funds like XLP an attractive investment option.

More Gains Ahead?

It seems like the fund will remain strong, with a positive weighted alpha of 18.10, which gives cues of a further rally.