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Retail ETF (XRT) Hits 52-Week High

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For investors looking for momentum, SPDR S&P Retail ETF (XRT - Free Report) is probably a suitable pick. The fund just hit a 52-week high and is up 185.2% from its 52-week low price of $26.29/share.

Let’s take a look at the fund and its near-term outlook to gain an insight into where it might be headed:

XRT in Focus

The underlying S&P Retail Select Industry Index represents the retail sub-industry portion of the S&P TMI. The S&P TMI tracks all the U.S. common stocks listed on the NYSE, AMEX, NASDAQ National Market and NASDAQ Small Cap exchanges. The Retail Index is a modified equal weight index. The expense ratio is 0.35% annually.

Why the Move?

The retail sector has rallied because Biden started his term by signing a number of executive orders to counter the ill effects of the COVID-19 pandemic. Biden’s $1.9-trillion stimulus plan, named as the American Rescue Plan, is helping retail stocks.

The relief package will extend the additional federal unemployment payment through September and will raise it to $400 per week. The new plan also includes $1,400 of direct payments to many Americans and extends the federal moratoriums on evictions and foreclosures through September, per a CNBC article. Such measures will likely boost consumers’ discretionary spending and benefit retail stocks.

More Gains Ahead?

The Zacks Rank #3 (Buy) fund has a positive weighted alpha of 94.86. So, there is a decent outlook ahead for those who want to ride this surging ETF a shade further.

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