Investors seeking momentum may have SPDR S&P Transportation ETF (XTN Quick QuoteXTN - Free Report) on radar now. The fund recently hit a new 52-week high. Shares of XTN are up approximately 89.9% from their 52-week low of $35.96/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.

XTN in Focus

The fund looks to provide exposure to the transportation segment of the S&P TMI, comprises the following sub-industries: Air Freight & Logistics, Airlines, Airport Services, Highways & Rail Tracks, Marine, Marine Ports & Services, Railroads, and Trucking. It charges 35 bps in fees.

Why the move?

Transportation stocks (one of the main victims of the coronavirus crisis) have been trying to bounce back on a rebound in travel demand.  Better consumer confidence and some federal aid also boosted the space in the past six months.

However, the recent rise in virus cases and no further stimulus once again started to bother the fund. But latest news that a Pfizer (PFE) and BioNTech (BNTX) vaccine candidate was more than 90% effective in avoiding COVID-19 in its clinical trial offered a fresh lease of hope to the space and the fund.

More Gains Ahead?

The fund has a positive weighted alpha of 14.30. So, there is a decent outlook ahead for those who want to ride this surging ETF a shade further.

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