For investors looking for dynamism, Energy Select Sector SPDR XLE is probably on the radar. The fund just hit a 52-week high and is up about 81% from its 52-week low of $45.14/share.
But are more gains in store for this ETF? Let’s take a quick look at the fund and its near-term outlook to get a better idea of its direction:
XLE in a nutshell
This fund targets the energy sector and offers exposure to companies in the oil, gas and consumable fuels, energy equipment and services sectors. It charges investors 10 basis points per year in fees (see: all Energy ETFs here).
Why the move?
The energy sector has been an area to watch lately, given the surge in oil prices. News of the European Union’s proposed new sanctions against Russia pushed oil prices higher, offsetting concerns about demand from China. The proposal includes phasing out the supply of Russian crude in six months and refined products by the end of 2022. The European Union also proposes to ban all shipping, brokerage, insurance and financing offered by EU companies for the transport of Russian oil in a month. weather.
More wins to come?
Currently, XLE has a Zacks ETF Rank #2 (Buy) with a high-risk outlook, suggesting the outperformance may continue in the coming months. However, many of the spaces that make up this ETF have strong Zacks Industry rankings. So there is certainly promise for those who want to ride this booming ETF a little further.
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.