For investors looking for momentum, First Trust S&P REIT Index Fund (FRI Quick QuoteFRI - Free Report) is probably a suitable pick. The fund just hit a 52-week high and is up 43.5% from its 52-week low price of $22.23/share.

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

FRI in Focus

The First Trust S&P REIT Index Fund seeks investment results that correspond generally to the price and yield (before the Fund's fees and expenses) of an equity index called the S&P United States REIT Index. It has AUM of $215 million and charges an expense ratio of 50 basis points, as stated in the prospectus.

Why the Move?

The Omicron variant has stolen some year-end rally thunder. Weakness has been observed on the bourses as there is still a lot of ambiguity about the severity of the new strain and the efficacy of the existing vaccines. Various measures are being taken to curtail the spread, again impacting the economic recovery achieved so far from the pandemic-led slump. These factors are making investors jittery, adding to the lure of these funds. This is because these funds offer outsized yields and act as good investing options when increased safe-haven trade keeps yields in check.

Moreover, real estate or REIT stocks act as a good bet in a rising inflation environment. Both the property's resale value and rental income increase with price inflation.  This is making funds like FRI an impressive investment option.

More Gains Ahead?

It seems like the fund will remain strong, with a positive weighted alpha of 37.53, which gives cues of a further rally.