For investors looking for momentum, iShares U.S. Energy ETF (IYE Quick QuoteIYE - Free Report) is probably a suitable pick. The fund just hit a 52-week high and is up 118% from its 52-week low price of $14.52/share.

Let’s take a look at the fund and its near-term outlook to gain an insight into where it might be headed:

IYE in Focus

The fund seeks to track the investment results of an index composed of U.S. equities in the energy sector. It has AUM of $2.52 billion and charges 41 basis points in annual fees.

Why the Move?

The coronavirus vaccine rollout is gradually helping control the spread of the outbreak across the globe. Accordingly, the global demand and economic growth levels are on the path of recovery from the pandemic-led slump. The optimism surrounding the gradual reopening of global economies and increasing demand is painting a rosy picture for cyclical sectors. Thus, the energy sector has been gaining investors’ attention on the latest rally in oil prices. Notably, shrinking crude inventories and surging fuel demand are pushing oil prices higher. This is making funds like IYE an attractive investment option.

More Gains Ahead?

It seems like the fund will remain strong, with a positive weighted alpha of 83.19, which gives cues of a further rally.