Vanguard Energy Index Fund ETF Shares (VDE Quick QuoteVDE - Free Report) is probably on the radar for investors seeking momentum. The fund just hit a 52-week high and has surged 50.69% from its 52-week low price of $119.45 per share.

Are more gains in store for this ETF? Let us take a quick look at the fund and the near-term outlook on it to get a better idea of where it might be headed.

VDE in Focus

The underlying MSCI US Investable Market Index /Energy 25/50 is made up of stocks of large, mid-size and small U.S. companies within the energy sector. The product charges 0.09% in annual fees (see: all Energy ETFs here).

Why the Move?

The energy sector has been an area to watch as oil prices stay elevated amid uncertainty over traffic through the Strait of Hormuz and persistent supply disruptions. Limited diplomatic progress between Tehran and Washington continues to add to concerns over global oil supplies.With tensions showing little sign of easing and expectations that the strait could remain closed for an extended period, oil prices could stay higher for longer than previously anticipated.

More Gains Ahead?

Currently, VDE sports a Zacks ETF Rank #1 (Strong Buy), with a High risk outlook. It might continue its strong performance in the near term, with a positive weighted alpha of 47.74 (per Barchart.com), which hints at a rally.