For investors seeking momentum, Technology Select Sector SPDR ETF (XLK Quick QuoteXLK - Free Report) is probably on the radar. The fund just hit a 52-week high and is up 52.5% from its 52-week low of $172.45 per 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:

XLK in Focus

The underlying Technology Select Sector Index includes companies from the following industries: computers & peripherals; software; diversified telecommunication services; communications equipment; semiconductor & semiconductor equipment; internet software & services; IT services; wireless telecommunication services; electronic equipment & instruments; and office electronics. SPDR NYSE Technology ETF charges 8 bps in annual fees (see: all the Technology ETFs here).

Why the Move?

The broad technology sector has been an area to watch lately, driven by a strong tech rally. Google parent Alphabet (GOOGL) recently reported solid second-quarter 2025 results, beating both revenue and earnings estimates.

The tech giant also raised its capital expenditures forecast for the year, signaling a more aggressive investment push into AI infrastructure. This has raised hopes for upbeat earnings results from other Big Tech companies.

More Gains Ahead?

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