For investors seeking momentum, First Trust Energy AlphaDEX Fund (FXN Quick QuoteFXN - Free Report) is probably on radar now. The fund just hit a 52-week high, and is up more than 42% from its 52-week low price of $12.83/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:

FXN in Focus   

It tracks the StrataQuant Energy Index. The fund has a large-cap bias (50%) followed by mid cap (29%) and small cap (21%). It comprises 42 holdings with Marathon Petroleum Corp (MPC Quick QuoteMPC - Free Report) holding the top weight of 6.27%. It charges 63 bps in fees per year (see: all the Energy ETFs here).

Why the Move?

The energy sector has been performing strongly. Brent prices jumped to the highest level in nearly four years on potential U.S. sanctions against Iran expected from November. Simultaneously, gas prices also soared to their highest level in four years. In September, demand for petroleum was the strongest for any specific month since August 2017 led majorly by motor gasoline, distillate and refinery feedstocks, while demand for gasoline was the highest since 1945.

More Gains Ahead?

Currently, FXN has a Zacks ETF Rank #3 (Hold) with a High risk outlook. So, it is hard to get a handle on the fund’s future movement. Decent returns could be expected as the fund carries a positive weighted alpha of 29. So, there is definitely still some promise for those who want to ride on this surging ETF a little longer. However some vigilance is required due to the risk scenario.

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