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Consumer Discretionary ETF (XLY) Hits New 52-Week High

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For investors seeking momentum, Consumer Discretionary Select Sector SPDR Fund (XLY - Free Report) is probably on radar now. The fund just hit a 52-week high and is up about 18% from its 52-week low price of $74.18/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:

XLY in Focus    

XLY focuses on the consumer discretionary segment of the U.S. market. The fund has a large-cap focus with key holdings in media, Internet & direct marketing retail, specialty retail and hotels restaurants & leisure segments. It charges investors 14 basis points a year and has top holdings in Amazon (AMZN - Free Report) , Home Depot (HD - Free Report) and Comcast (CMCSA - Free Report) (see: all the Consumer Discretionary ETFs here).

Why the Move?

The consumer discretionary sector has been an area to watch lately given the host of positive news flows that are building enough confidence in the space. The consumer confidence jumped to the highest level in 16 years while trade deficit narrowed and inventories increased. All these indicate that economic growth has regained speed after faltering at the start of the year.

More Gains Ahead?

Currently, XLY has a Zacks ETF Rank of 3 or ‘Hold’ rating with a Medium risk outlook so it is hard to get a handle on its future returns in 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 still some promise for those who want to ride on this surging ETF a little further.

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