For investors seeking momentum, Consumer Staples Select Sector SPDR Fund (XLP Quick QuoteXLP - Free Report) is probably on the radar. The fund just hit a 52-week high and is up 19% from its 52-week low price of $65.18/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:

XLP in Focus

Consumer Staples Select Sector SPDR Fund offers exposure to companies primarily involved in the development and production of consumer products that cover food and drug retailing, beverages, food products, tobacco, household products and personal products. The product charges 9 bps in annual fees (see: all the Consumer Staples ETFs here).

Why the Move?

The consumer staples segment of the broad stock market has been an area to watch lately, as investors are flocking into defensive sectors in search of cheap stocks. The consumer staples space is home to a variety of items like food & beverages, non-durable household goods, hypermarkets and consumer supercenters that are essential for daily needs. These products see steady demand even during an economic downturn due to their low level of correlation with economic cycles.

More Gains Ahead?

Currently, XLP has a Zacks ETF Rank #3 (Hold) with a Medium risk outlook. Therefore, it is hard to get a handle on its future returns one way or the other. However, many of the segments 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.