Yahoo Finance Energy ETF (XLE) Hits New 52-Week High
For investors seeking momentum, Energy Select Sector SPDR XLE is probably on the radar. The fund just hit a 52-week high and is up about 23% from its 52-week low price of $76.25/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 of where it might be headed:
XLE in Focus
Energy Select Sector SPDR is the largest and the most popular ETF in the energy space. It offers exposure to the broad energy space and follows the Energy Select Sector Index. It charges investors 9 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 the surge in oil prices. Escalating conflict in the Middle East and between Russia and Ukraine has led to concerns over tighter global oil supply. This, coupled with shrinking U.S. rig count and higher demand forecasts by the International Energy Agency, is driving oil prices higher, thereby benefiting the energy sector.
More Gains Ahead?
Currently, XLE has a Zacks ETF Rank #1 (Strong Buy) with a High risk outlook, suggesting that the outperformance could continue in the months ahead. Many spaces that make up this ETF have a strong Zacks Industry Rank. Thus, there is definitely some promise for those who want to ride this surging ETF a little further.
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Energy Select Sector SPDR ETF (XLE): ETF Research Reports
