For investors looking for momentum, Vanguard Energy ETF (VDE Quick QuoteVDE - Free Report) is probably a suitable pick. The fund hit a 52-week high and is up 83.5% from its 52-week low price of $62.92/share.

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

VDE in Focus

The Vanguard Energy ETF seeks to track the performance of the MSCI US Investable Market Energy 25/50 Index. It has an AUM of $7.83 billion and charges an expense ratio of 10 basis points.

Why the Move?

The energy space has been a prime investment area, holding the interest of market participants since the beginning of the year. Reopening global economies, accelerating coronavirus vaccine rollout and improving labor markets were adding to the sector’s strength. The rally in oil prices due to the Russia-Ukraine crisis raised the sector’s momentum. This is making funds like VDE an impressive investment option.

More Gains Ahead?

It seems like the Vanguard Energy ETF will remain strong, with a positive weighted alpha of 66.00, which gives cues of a further rally.