For investors seeking momentum, Financial Select Sector SPDR ETF (XLF Quick QuoteXLF - Free Report) is probably on the radar. The fund just hit a 52-week high and is up 29% from its 52-week low of $40.66 per share. 

But are there 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:

XLF in Focus

Financial Select Sector SPDR Fund offers exposure to companies in the financial services, insurance, banks, capital markets, mortgage real estate investment trusts (“REITs”), and consumer finance. It charges 8 bps in annual fees (see: all the Financials ETFs here).

Why the Move?

The broad financial space has been an area to watch lately, given the surge in bank stocks. U.S. banking giants, including JPMorgan (JPM Quick QuoteJPM - Free Report) , Bank of America (BAC Quick QuoteBAC - Free Report) and Goldman Sachs (GS Quick QuoteGS - Free Report) , announced dividend hikes and new share buybacks after passing the Fed's stress test. The test showed banks hold strong capital buffers.

More Gains Ahead? 

Currently, XLF has a Zacks ETF Rank #1 (Strong Buy), suggesting that the outperformance could continue in the months ahead. 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.