For investors seeking momentum, Invesco S&P SmallCap Consumer Staples ETF (PSCC Quick QuotePSCC - Free Report) is probably on radar. The fund just hit a 52-week high and is up 23.56% from its 52-week low price of $31.02/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:

PSCC in Focus

The S&P SmallCap 600 Capped Consumer Staples Index comprises common stocks of U.S. consumer staples companies that are principally engaged in the businesses of providing consumer goods & services that have non-cyclical characteristics. The index is a subset of the S&P SmallCap 600 Index. The product charges 29 bps in annual fees (See: all the Consumer Staples ETF here).

Why the Move?

The consumer staples sector is widely considered a safe haven, particularly during periods of political and economic uncertainty. Its products and services have stable demand, largely unaffected by economic fluctuations, making it less vulnerable to economic cycles.

In light of Fitch's recent downgrade of the U.S. credit rating, investors and analysts expect heightened concerns about the country's debt, political divisions, and the global standing of the U.S. dollar, making the consumer staples sector an attractive bet. Fitch's concern stems from anticipated fiscal challenges over the next few years and recurring disputes over the debt ceiling.

More Gains Ahead?

Currently, PSCC has a Zacks ETF Rank #3 (Hold). However, the fund might continue its strong performance given a positive weighted alpha of 11.8.