For investors seeking momentum, iShares U.S. Consumer Staples ETF (IYK Quick QuoteIYK - Free Report) is probably on the radar. The fund just hit a 52-week high and is up about 18% from its 52-week low price of $163.04/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:

IYK in Focus

iShares U.S. Consumer Staples ETF offers exposure to U.S. companies that produce a wide range consumer goods, including food, automobiles and household goods. The fund has key holdings in food beverage tobacco and household & personal Products. iShares U.S. Consumer Staples ETF charges investors 41 basis points a year in fees (see: all the Consumer Staples ETFs here).

Why the Move?

The consumer staples sector has been an area to watch lately, given the return of volatility in the stock market due to a surge in the new variant of COVID-19. This is because the consumer staples sector sees steady demand in the event of an economic downturn due to its low level of correlation with economic cycles. Additionally, low rates are acting as catalysts for the sector, leading to an increase in consumer spending power on a wide range of products. All these factors make the consumer segment a great place to stay invested in.

More Gains Ahead?

Currently, IYK has a Zacks ETF Rank #3 (Hold) with a Medium 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.