Energy ETF (XLE) Hits New 52-Week High
This energy ETF hits a new 52-week high. Are more gains in store for this ETF?
For investors seeking momentum, Energy Select Sector SPDR XLE is probably on radar. The fund just hit a 52-week high and is up about 110% from its 52-week low price of $26.98/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:
XLE in Focus
This fund targets the energy sector and provides exposure to companies in the oil, gas and consumable fuel, energy equipment and services industries. It charges investors 12 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. Global supply concerns in crude, natural gas and coal markets as well as growing fuel demand are driving oil prices higher. Overall demand for fuel has rebounded to pre-pandemic levels. With new vaccination mandates to control the rising Delta variant of COVID-19, demand is poised to increase. Additionally, the energy crunch has sent natural gas prices skyrocketing, prompting power producers to switch to oil derivatives from gas to generate electricity.
More Gains Ahead?
Currently, XLE has a Zacks ETF Rank #3 (Hold) with a High risk outlook. Therefore, it is hard to get a handle on its future returns one way or the other. However, many of the segments 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.
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Energy Select Sector SPDR ETF (XLE): ETF Research Reports
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