For investors seeking momentum, Vanguard Energy ETF (VDE Quick QuoteVDE - Free Report) is probably on radar. The fund just hit a 52-week high and is up about 181% from its 52-week low price of $72.20/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:

VDE in Focus

Vanguard Energy ETF targets the broad energy sector and  has key holdings in integrated oil & gas, and oil & gas exploration & production. It charges investors 10 basis points a year in fees (see: all the Energy ETFs here).

Why the Move?

The energy sector has been an area to watch lately, given an oil price surge. The speculation on China, the world’s second largest oil consumer, relaxing its zero-COVID policy has sent the oil price higher. Additionally, the tight supply conditions continue to support commodity prices.

More Gains Ahead?

Currently, VDE has a Zacks ETF Rank #1 (Strong Buy) with a High 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.