For investors seeking momentum, SPDR S&P Retail ETF (XRT Quick QuoteXRT - Free Report) is probably on radar now. The fund just hit a 52-week high and is up more than 20% from its 52-week low price of $37.72/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:

XRT in Focus

This product looks to track the S&P Retail Select Industry Index. Overstock.com, Finish Line and Tailored Brands are the top three holdings. It charges 35 bps in fees (see all Consumer Discretionary ETFs here).

Why the Move?       

Shares of U.S. department stores soared on Tuesday as Mastercard Inc revealed consumer spending of about $800 billion during the holiday shopping season, up 4.9% year over year. The year-over-year growth was the fastest in six years. What was striking is that probably just 11% or 12% of total retail sales came from online purchases, as indicated by Mastercard. Majority of the shopping was done at stores. The news gave a boost to the department stores.

More Gains Ahead?

The fund has a Zacks Rank #3 (Hold). So, it is tough to conclude whether it can surge ahead. The fund has a positive weighted alpha of 10.50. A positive weighted alpha hints at more gains. As a result, there is definitely some promise for investors who want to ride on this surging ETF.

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 >>