State Street SPDR S&P Software & Services ETF (XSW Quick QuoteXSW - Free Report) is probably on the radar for investors seeking momentum. The fund just hit a 52-week high and has surged 60% from its 52-week low price of $135.19 per share.

Are 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.

XSW in Focus

The underlying S&P Software & Services Select Industry Index represents the software sub-industry portion of the S&P Total Stock Market Index. The Software Index is a modified equal weight index. The product charges 0.35% in annual fees.

Why the Move?

XSW’s recent 52-week high was consistent with a broader recovery in software stocks as AI-disruption fears eased and investors sought opportunities beyond semiconductor leaders. Note that XSW gained about 9% last week against 1.8% decline in State Street Technology Select Sector SPDR ETF (XLK Quick QuoteXLK - Free Report) as investors rotated out of capital-heavy and debt-laden AI-infrastructure trade.

More Gains Ahead?

Currently, XSW has a Zacks ETF Rank #2 (Buy), with a “High” risk outlook. It might continue its strong performance in the near term, with a positive weighted alpha of 20.03 (per Barchart.com), which hints at a rally.