For investors seeking momentum, Industrial Select Sector SPDR Fund (XLI Quick QuoteXLI - Free Report) is probably on radar. The fund just hit a 52-week high and is up 29% from its 52-week low price of $82.75/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:

XLI in Focus

Industrial Select Sector SPDR targets the broad industrial sector with key holdings in machinery, and aerospace & defense. It charges 40 bps in annual fees. (see: all the Industrials ETFs here).

Why the Move?

The industrial sector has been an area to watch lately, given the prospect of another rate hike. Industrial sector tend to benefit from a hawkish stance of the Fed as it reflects a stronger economy, which can lead to increased business investment, infrastructure spending, and demand for durable goods. These industries tend to perform well during periods of economic expansion.

More Gains Ahead?

Currently, XLI has a Zacks ETF Rank #2 (Buy) with a Medium risk outlook, suggesting that the outperformance could continue in the months ahead. However, many spaces that make up this ETF have a strong Zacks Industry Rank. So, there is definitely some promise for those who want to ride this surging ETF a little further.