For investors seeking momentum, VanEck Vectors Retail ETF (RTH Quick QuoteRTH - Free Report) is probably on radar now. The fund just hit a 52-week high, and is up nearly by 39.1% from its 52-week low price of $79.58/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: 

 

 

The fund focuses on the consumer discretionary segment of the market. It tracks the MVIS US Listed Retail 25 Index and has a large-cap bias. There are 25 holdings in the fund pool with major allocations to Amazon.com, Home Depot and Walmart. The expense ratio is 0.35% (see all the Consumer Discretionary ETFs). 

 

 

The U.S. market has been on the rise thanks to a slew of upbeat economic data — GDP grew at 4.1% annual rate (the best clip in nearly four years) in Q2. The market has completed its longest bull run in U.S. history and is continuing the uptrend. 

 

The consumer discretionary space has also benefited immensely from higher take-home packages post tax cuts. All these helped consumer spending rise by 0.4% in July, marking the sixth straight month of healthy gains.   

 

 

Currently, RTH has a Zacks ETF Rank #3 (Hold) so it is hard to get a handle on its future returns one way or another. It seems that the fund will perform decently in the near term given a a positive weighted alpha of 39.60 and a low 20-day historical volatility of 8.59%.

 

 

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