For investors seeking momentum, Energy Select Sector SPDR (XLE Quick QuoteXLE - Free Report) is probably on radar. The fund just hit a 52-week high and is up about 81% from its 52-week low price of $45.14/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:

XLE in Focus

This fund targets the energy sector and provides exposure to companies in the oil, gas and consumable fuel, energy equipment and services industries. It charges investors 10 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. The news of the European Union’s proposal for new sanctions against Russia lit up oil prices higher, offsetting concerns over demand from China. The proposal includes phasing out supplies of Russian crude in six months and refined products by the end of 2022. The European Union also proposes to ban all shipping, brokerage, insurance and financing services offered by EU companies for the transportation of Russian oil in a month's time.

More Gains Ahead?

Currently, XLE has a Zacks ETF Rank #2 (Buy) with a High risk outlook, suggesting that the outperformance could continue in the months ahead. However, many spaces 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.