iShares U.S. Energy ETF (IYE Quick QuoteIYE - Free Report) is probably on the radar for investors seeking momentum. The fund just hit a 52-week high and has surged 57.05% from its 52-week low price of $45.12 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.

IYE in Focus

The underlying Russell 1000 Energy RIC 22.5/45 Capped Gross Index measures the performance of the energy sector of the U.S. equity market. The product charges 0.37% in annual fees (see: all Energy ETFs here).

Why the Move?

The energy sector has been an area to watch as geopolitical tensions in the Middle East continue to persist. Escalating hostilities between Saudi Arabia and Iran-backed Houthis have fueled a surge in oil prices. Prolonged geopolitical uncertainty in the region could further support the fund, as sustained tensions may keep oil prices elevated longer.

More Gains Ahead?

Currently, IYE has a Zacks ETF Rank #3 (Hold), with a High risk outlook. It might continue its strong performance in the near term, with a positive weighted alpha of 53.54 (per Barchart.com), which hints at a rally.