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 78.3% from its 52-week low price of $12.26/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 $1.50 billion and charges an expense ratio of 8 basis points.

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 to 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.

The energy sector has also been gaining investor attention on the latest rally in oil prices. Oil prices have been rallying amid the Russia-Ukraine geopolitical crisis. Russia’s move is leading to a rise in oil prices as it is among the world’s largest suppliers of oil and natural gas. 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 73.34, which gives cues of a further rally.