For investors seeking momentum, VanEck Uranium+Nuclear Energy ETF (NLR Quick QuoteNLR - Free Report) is probably on radar. The fund just hit a 52-week high and is up 31.41% from its 52-week low price of $48.23/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:

NLR in Focus

The MVIS Global Uranium & Nuclear Energy Index tracks the overall performance of companies involved in uranium mining or uranium mining projects, the construction, engineering and maintenance of nuclear power facilities and nuclear reactors, the production of electricity from nuclear sources, providing equipment, technology and services to the nuclear power industry. The product charges 61 bps in annual fees (See:  Alternative Energy ETFs here).

Why the Move?

The upbeat outlook in the sector results from growing interest in nuclear energy, which has led several developed nations to invest in new infrastructure projects while extending the operational life of their existing nuclear power stations. The ongoing energy issues and the requirement for dependable, environmentally friendly energy sources are helping in the sector’s upsurge.

Construction of Vogtle Plant’s Unit 3 in the United States, the country’s first nuclear reactor built from scratch in the last 30 years is also a positive for the fund.

More Gains Ahead?

Consequently, the fund might continue its strong performance given a positive weighted alpha of 17.40.