For investors seeking momentum, Invesco Solar ETF (TAN Quick QuoteTAN - Free Report) is probably on radar now. The fund just hit a 52-week high and is up around 84.4% from its 52-week low price of $17.47/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:

TAN in Focus

The underlying MAC Global Solar Energy Index is comprised of companies in the solar energy industry. SolarEdge Technologies, First Solar and Enphase Energy are the top three holdings of the fund. It charges 70 basis points in annual fees (see all Alternative Energy ETFs here).

Why the Move?

A rise in crude oil prices on Saudi oil facilities attacks disrupted 5% of the world’s global supply. As oil prices jumped, investors probably have turned to alternative energy thinking that this group could also be a likely gainer. Plus, the demand for solar panels is rising. “Many U.S. solar companies are hoarding panels to take advantage of the full solar subsidy that is set to step down beginning next year,”

More Gains Ahead?

Currently, TAN has a Zacks ETF Rank #3 (Hold) with a High-risk outlook. The fund has a positive weighted alpha of 57.80. So, there is definitely still some promise for those who want to ride on this surging ETF a little longer.

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