For investors seeking momentum, S&P Oil & Gas Exploration & Production ETF (XOP Quick QuoteXOP - Free Report) is probably on radar. The fund just hit a 52-week high and is up about 70% from its 52-week low price of $63.93/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 of where it might be headed:

XOP in Focus

S&P Oil & Gas Exploration & Production ETF targets the oil and gas exploration and production corner of the broad energy space. It charges investors 35 basis points a year in fees (see: all the Energy ETFs here).

Why the Move?

The energy sector has been an area to watch lately, given an oil price surge buoyed by supply disruptions and unprecedented demand. Oil prices climbed to the highest since 2014 as an attack on a fuel storage facility in the Middle East has threatened supply in the major producing regions such as the United Arab Emirates and Russia. On the demand side, increasing COVID-19 vaccination rates, loosening pandemic-related restrictions, and a growing economy have bolstered the demand for energy.

More Gains Ahead?

Currently, XOP has a Zacks ETF Rank #3 (Hold) with a High risk outlook. Therefore, it is hard to get a handle on its future returns one way or the other. However, 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.