Investors seeking momentum may have Consumer Discretionary Select Sector SPDR ETF (XLY Quick QuoteXLY - Free Report) on radar now. The fund recently hit a new 52-week high. Shares of XLY are up approximately 35.1% from their 52-week low of $141.74/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.

XLY In Focus

The underlying Consumer Discretionary Select Sector Index seeks to provide an effective representation of the consumer discretionary sector of the S&P 500 Index. The fund charges 12 bps in fees.

Why The Move?

Retail sales in the United States unexpectedly increased 0.7% sequentially in September of 2021, following an upwardly revised 0.9% gain in August, beating market forecasts of a 0.2% decline. Plus, we have stepped inthe all-important fourth quarter. The late October-December period embraces the key holiday season, which puts the spotlight on the performance of retailers. As loads of sales-boosting events — Halloween, Thanksgiving, Cyber Monday, Black Friday and Christmas — fall in this quartile, the sector generally sees a sales boost.

More Gains Ahead?

The fund has a positive weighted alpha of 25.46 . So, there is a decent outlook ahead for those who want to ride this surging ETF a shade further.