For investors seeking momentum, SPDR S&P Insurance ETF (KIE Quick QuoteKIE - Free Report) is probably on radar. The fund just hit a 52-week high, and is up 22.8% from its 52-week low of $35.38 per 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 of where it might be headed:

KIE In Focus

The underlying S&P Insurance Select Industry Index represents the insurance segment of the S&P Total Market Index. The fund charges 35 bps in fees and yields 1.82% annually.

Why The Move?

The insurance segment was bullish thanks to the chances of steepening of the yield curve. Insurance stocks are among the prime beneficiaries of rising rates, as these are able to earn higher returns on their investment portfolio of longer-duration bonds. At the same time, these firms incur a loss as the value of longer-duration bonds goes down with rising interest rates. Nevertheless, since insurance companies have long-term investment horizons, they can hold investments until maturity and hence, no actual losses will be realized.

More Gains Ahead?

The fund has a positive weighted alpha of 11.50. So, there is a decent outlook ahead for those who want to ride this surging ETF a shade further.

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