The Fidelity MSCI Energy Index ETF (FENY Quick QuoteFENY - Free Report) is probably a suitable pick for investors looking for momentum. FENY hit a 52-week high and is up 70.8% from its 52-week low price of $10.84/share.

Let’s take a look at FENY and its near-term outlook to gauge where it might be headed.

FENY in Focus

The Fidelity MSCI Energy Index ETF seeks to track the performance of the MSCI USA IMI Energy Index. It has AUM of $1.21 billion and charges an expense ratio of 8 basis points.

Why the Move?

Investors are closely tracking the energy sector, which is showing strength as global demand and economic growth levels are on the path of recovery from the pandemic lows. The coronavirus vaccine rollout is gradually controlling the outbreak's spread across the globe. The optimism surrounding the reopening of global economies and increasing demand is painting a rosy picture for the cyclical sectors.

Oil prices have been rising since the beginning of 2022. The upside in crude oil prices is triggered by various factors like easing Omicron variant concerns, supply shortages, and geopolitical tensions in Eastern Europe and the Middle East.This is making funds like FENY an impressive investment option.

More Gains Ahead?

It seems like the Fidelity MSCI Energy Index ETF will remain strong, with a positive weighted alpha of 62.83, which gives cues of a further rally.