For investors seeking momentum, iShares U.S. Oil & Gas Exploration & Production ETF (IEO Quick QuoteIEO - Free Report) is probably on radar. The fund just hit a 52-week high and is up 107% from its 52-week low price of $45.80/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:

IEO in Focus

This ETF offers exposure to U.S. companies that are engaged in the exploration, production, and distribution of oil and gas. It is home to 51 securities with a double-digit allocation to the top two firms, while the others hold less than 8% share. It charges 42 basis points in annual fees (see: all the Energy ETFs here).

Why the Move?

The energy segment of the broad market has been an area to watch lately given the rising oil prices. Tightening supply conditions and robust demand are providing a boost to energy prices. Adding to the positive sentiment is the state of backwardation in the oil futures market, where later-dated contracts are cheaper than near-term contracts. This signals that the oil market is tightening and demand is robust, paving the way for an oil rally. All these fundamentals have set the stage for a strong rally in the energy stocks and ETFs for the near term.

More Gains Ahead?

Currently, IEO has a Zacks ETF Rank #3 (Hold) with a High risk outlook. Therefore, it is hard to get a handle on its future returns one way or the other. However, many of the segments 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.