Investors seeking momentum may have Industrial Select Sector SPDR ETF (XLI Quick QuoteXLI - Free Report) on radar now. The fund recently hit a new 52-week high. Shares of XLI are up approximately 78.3% from their 52-week low of $55.54/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.

XLI in Focus

The underlying Industrial Select Sector Index includes companies from the following industries: industrial conglomerates; aerospace & defense; machinery; air freight & logistics; road & rail; commercial services & supplies; electrical equipment; construction & engineering; building products; airlines; and trading companies & distributors. The expense ratio is 0.12% (see all industrials ETFs here).

Why the move?

An industrial boom is apparent in the U.S. economy, thanks to Biden’s infrastructure plans. The sector has suffered massively amid the pandemic. With millions of Americans still unemployed, the creation of blue-collar jobs would be of high priority. The latest recruitment pattern in the sector also calls for optimism.

More Gains Ahead?

The fund has a positive weighted alpha of 70.62. So, there is a decent outlook ahead for those who want to ride this surging ETF a shade further.

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