Gasoline ETF (UGA) Hits New 52-Week High
United States Gasoline ETF UGA is probably on the radar for investors seeking momentum. The fund just hit a 52-week high and has moved up 109.9% from its 52-week low price of $60.40 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.
UGA in Focus
The underlying GASONLINE PRICE INDEX looks to reflect the changes of the price of gasoline, as measured by the price of the contract on unleaded gasoline for delivery to the New York harbor, traded on the NYMEX that is the near month to expire, except when the near contract is within two weeks of expiration, in which case it will be measured by the contract that is the next month contract to expire. The expense ratio of the fund is 1.02%.
Why the Move?
Energy prices climbed as renewed Middle East tensions heightened supply disruption fears. Houthi attacks in the Red Sea and renewed clashes around the Strait of Hormuz intensified concerns over global oil flows. Trump's renewed Hormuz blockade plan and escalating U.S.-Iran hostilities further fueled the rally in crude prices and other energy products.
More Gains Ahead?
UGA might continue its strong performance in the near term, with a positive weighted alpha of 117.17 (per Barchart.com), which hints at a rally.
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This article originally published on Zacks Investment Research (zacks.com).
Source Zacks-com
