For investors seeking momentum, Utilities Select Sector SPDR (XLU Quick QuoteXLU - Free Report) is probably on radar. The fund just hit a 52-week high and is up 17.4% from its 52-week low price of $62.99/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 of where it might be headed:

XLU in Focus

Utilities Select Sector SPDR targets the utilities segment of the broad stock market. It seeks to provide exposure to companies from the electric utility, water utility, multi-utility, independent power and renewable electricity producers, and gas utility industries. The product charges 10 bps in annual fees (see: all the Utilities ETFs here).

Why the Move?

The utility sector has been an area to watch lately given uncertainty and volatility. The U.S. Treasury bond yield curve inverted for the first time in three years, signaling U.S. recession. The curve is flattening as investors are betting on faster and deeper Federal Reserve rate hikes while at the same time worrying about near-term growth prospects in the world's biggest economy. Being a low-beta sector, utility is relatively protected from large swings (ups and downs) in the stock market and is thus, considered a defensive investment or safe haven amid economic or political turmoil.

More Gains Ahead?

Currently, XLU 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.