We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Image: Bigstock
Industrial ETF (XLI) Hits New 52-Week High
For investors seeking momentum, Industrial Select Sector SPDR Fund (XLI - Free Report) is probably on radar. The fund just hit a 52-week high and is up 29% from its 52-week low price of $82.75/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:
XLI in Focus
Industrial Select Sector SPDR targets the broad industrial sector with key holdings in machinery, and aerospace & defense. It charges 40 bps in annual fees. (see: all the Industrials ETFs here).
Why the Move?
The industrial sector has been an area to watch lately, given the prospect of another rate hike. Industrial sector tend to benefit from a hawkish stance of the Fed as it reflects a stronger economy, which can lead to increased business investment, infrastructure spending, and demand for durable goods. These industries tend to perform well during periods of economic expansion.
More Gains Ahead?
Currently, XLI has a Zacks ETF Rank #2 (Buy) with a Medium risk outlook, suggesting that the outperformance could continue in the months ahead. However, many spaces 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.