For investors seeking momentum, First Trust Materials AlphaDEX Fund (FXZ Quick QuoteFXZ - Free Report) is probably on radar. The fund just hit a 52-week high and is up 29% from its 52-week low price of $50.26/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:

FXZ in Focus

This product offers exposure to the materials sector and employs the AlphaDEX stock selection methodology to select stocks from the Russell 1000 Index. It has key holdings in chemicals and industrial metals & mining. The ETF charges 64 basis points in annual fees (see: all the Materials ETFs here).

Why the Move?

The materials sector has been an area to watch lately, given the escalating tensions between Russia and Ukraine coupled with rising prices. The tensions have led to supply disruption fears in an already-tight commodity market, pushing the prices up. Russia is a commodities powerhouse and a key supplier of energy, metals and agri. As prices of various materials have been on the surge, the material sector has been witnessing solid growth. Additionally, a tight policy means solid economic growth, which in turn results in higher demand for materials.

More Gains Ahead?

Currently, FXZ has a Zacks ETF Rank #1 (Strong Buy) with a Medium 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.