For investors seeking momentum, Real Estate Select Sector SPDR Fund (XLRE Quick QuoteXLRE - Free Report) is probably on radar. The fund just hit a 52-week high, and is up 40% from its 52-week low price of $30.03 per 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:

XLRE in Focus

This product seeks to provide exposure to companies from real estate management and development and REITs, excluding mortgage REITs. It is concentrated on the top firm at 12.7% while the other firms account for less than 9.6% share. It charges investors 12 basis points a year in fees (see: all the Real Estate ETFs here).

Why the Move?

The real estate corner of the broad market has been an area to watch lately given the Fed’s accommodative stance and pullback in rising yields. This has returned the lure for rate-sensitive sectors. Additionally, another wave of rising COVID-19 cases worldwide is making investors jittery, raising the appeal for these stocks. This is because these often act as a safe haven in times of market turbulence and concurrently offer higher returns due to their outsized yields.

More Gains Ahead?

Currently, XLRE has a Zacks ETF Rank #3 (Hold) with a High risk outlook. Therefore, it is hard to get a handle on its future returns one way or the other. However, many of the segments that make up this ETF have a strong Zacks Industry Rank. So, there is definitely some promise for those who want to ride this surging ETF a little further.

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