For investors seeking momentum, First Trust S&P REIT Index Fund (FRI Quick QuoteFRI - Free Report) is probably on radar. The fund just hit a 52-week high and is up 30.3% from its 52-week low of $20.64 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 on where it might be headed.

FRI in Focus

This fund provides exposure to the broad U.S. real estate sector. About half of the portfolio is dominated by commercial REITs while specialized REITs and residential REITs round off the next two spots. The ETF charges 50 basis points in fees (see: all the Real Estate ETFs here).

Why the Move?

The real estate corner of the broad market has been an area to watch lately, given the Fed’s two rate cuts so far this year that raised the appeal for the rate-sensitive stocks. Additionally, still-unresolved U.S.-China trade war, global growth concerns, geopolitical tensions and Brexit concerns continued to fuel growth in the sector. This is because these often act as a safe haven in times of market turbulence and concurrently offer higher returns due to their outsized yields.

More Gains Ahead?

Currently, FRI has a Zacks ETF Rank #2 (Buy) with a Medium risk outlook, suggesting that the outperformance could continue in the months ahead. Further, many of the segments 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.

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