For investors seeking momentum, Utilities Select Sector SPDR ETF (XLU Quick QuoteXLU - Free Report) is probably on the radar. The fund just hit a 52-week high and has moved up 21.5% from its 52-week low price of $71.02 per share.

But are there more gains in store for this ETF? Let us 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.

XLU in Focus

The underlying Utilities Select Sector Index seeks to provide an effective representation of the Utilities sector of the S&P 500 Index. The product charges 8 bps in annual fees.

Why the Move?

The utility sector has been an area to watch lately, given investors’ drive toward safety in defensive investments, given uncertain trade policies. Being a low-beta sector, utility is relatively protected from large swings (ups and downs) in the stock market and is thus considered a defensive investment or safe haven amid economic or political turmoil.

More Gains Ahead?

XLU may continue its strong performance in the near term, with a positive weighted alpha of 16.73 (as of Barchart.com), which gives cues of a further rally.