Energy ETF (DBO) Hits New 52-Week High
Invesco DB Oil ETF DBO is probably on the radar for investors seeking momentum. The fund just hit a 52-week high and has moved up 96.29% from its 52-week low price of $11.89 per share.
Are more gains in store for this ETF? Let us 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.
DBO in Focus
The underlying DBIQ Optimum Yield Crude Oil Index Excess Return Index is a rules-based index composed of futures contracts on Light Sweet Crude Oil (WTI) and is intended to reflect the performance of crude oil. The product charges 0.73% in annual fees (see: all Energy ETFs).
Why the Move?
The energy sector has been an area to watch, given the increase in oil prices due to the ongoing conflict in the Middle East. Recent comments by President Trump over the weekend, warning Iran to “get moving” or risk further consequences, pushed oil prices higher and heightened fears of renewed military escalation in the region.
Additionally, damage to critical energy infrastructure, coupled with the closure of the Strait of Hormuz and the resulting supply disruptions, is expected to keep oil prices elevated for longer.
More Gains Ahead?
DBO might continue its strong performance in the near term, with a positive weighted alpha of 93.36 (per Barchart.com), which hints at a rally.
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Invesco DB Oil ETF (DBO): ETF Research Reports
This article originally published on Zacks Investment Research (zacks.com).
Source Zacks-com
