For investors seeking momentum, SPDR S&P 500 ETF Trust (SPY Quick QuoteSPY - Free Report) is probably on radar. The fund just hit a 52-week high and is up 30.5% from its 52-week low price of $364.82/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:

SPY in Focus

SPDR S&P 500 ETF invests in stocks on the S&P 500 Index, representing 500 of the largest U.S. companies. It is widely spread across sectors with information technology, healthcare, consumer discretionary, financials and communication services accounting for a double-digit allocation each. The product charges 9 basis points in fees (see: all the Large Cap Blend ETFs here).

Why the Move?

The S&P 500 Index has been an area to watch lately given that it has been hitting a series of record highs. The benchmark notched the 69th record close of the year. A Santa Claus rally as well as strong holiday sales powered the markets at the end of the year amid the raging new COVID-19 variant.

More Gains Ahead?

Currently, SPY has a Zacks ETF Rank #2 (Buy) with a Medium risk outlook, suggesting continued outperformance in the months ahead. Further, 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.