Telecom ETF Hit a 52-Week High

For investors seeking momentum, the State Street SPDR S&P Telecom ETF XTL is probably on the radar now. The fund just hit a 52-week high and is up 148.7% from its 52-week low price of $87.91 per share.  But are there more gains in store for this ETF? Let’s take a quick look at the fund and its near-term outlook to get a better sense of where it might head.XTL in FocusThe underlying S&P Telecom Select Industry Index is one of nineteen S&P Select Industry Indices, each designed to measure the performance of a narrow sub-industry or group of sub-industries as defined by the GICS. Companies in the Select Industry Indices are classified based primarily on revenues; however, earnings and market perception are also considered. The Telecom Index is a modified equal weight index. The fund charges 35 basis points (bps) in annual fees (See: all Communication Services ETFs here).What Led to the Rise?Telecom stocks are showing resilience amid the Iran war due to their defensive qualities and underlying growth drivers. Essential services like connectivity remain in demand irrespective of geopolitical tensions. Accelerated 5G rollouts and rising data consumption from AI applications are boosting revenues of the companies.More Gains Ahead?XTL may continue its strong performance in the near term, with a positive weighted alpha of 141.68 (as per Barchart.com), which suggests a further rally.Boost Your Portfolio with Our Top ETF InsightsZacks' exclusive Fund Newsletter delivers actionable information, top news and analysis, as well as top-performing ETFs, straight to your inbox every week.Don’t miss out on this valuable resource. It’s free!Get it now >>This article originally published on Zacks Investment Research (zacks.com).Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks