For investors seeking momentum, SPDR S&P Homebuilders ETF (XHB Quick QuoteXHB - Free Report) is probably on radar now. The fund hit a 52-week high, and is up about 18.5% from its 52-week low price of $30.92/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 on where it might be headed:

XHB in Focus    

This ETF focuses on the homebuilding segment of the U.S. market. The fund has a mid-cap tilt with key holdings in the building products and homebuilding segments. XHB charges investors 35 basis points a year in fees and has top holdings in PulteGroup, Lennar Corporation and D.R. Horton Inc. (see: all the Industrial ETFs here).

Why the Move?

The homebuilding space has been an area to watch lately, given the optimism ahead of the key spring selling season - the peak time for home sellers. Despite the high home price and rise in mortgage rates, the demand for homes are expected to increase buoyed by solid hiring, rising wages and accelerated economic growth.

More Gains Ahead?

Currently, XHB has a Zacks ETF Rank of 1 or ‘Strong Buy’ rating with a High risk outlook, suggesting that the outperformance could continue in the months ahead. Further, many of the segments that make up this ETF have a strong Zacks Industry Rank, so there is definitely still some promise for those who want to ride on this surging ETF a little longer.

Want key ETF info delivered straight to your inbox?

Zacks’ free Fund Newsletter will brief you on top news and analysis, as well as top-performing ETFs, each week. Get it free >>