For investors seeking momentum, iShares Global Energy ETF IXC is probably on radar now. The fund just hit a 52-week high, and is up 20.5% from its 52-week low price of $30.34/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:
IXC in Focus
This fund offers exposure to energy companies that produce and distribute oil and gas from around the world. It has major holdings in American firms at 54%, while United Kingdom and Canada offer double-digit exposure each. The product charges 48 bps in annual fees from investors (see: all the Energy ETFs here).
Why the Move?
The energy corner of the broad investing world has been an area to watch lately as oil price saw a good start to the New Year, with the return of geopolitical risk in Iran and tightening supply. In fact, the first trading day of 2018 marked the strongest start for oil price since January 2014, with both West Texas Intermediate (WTI) and Brent opened trade above $60 per barrel. Brent has climbed above $68 per barrel at present for the first time since 2015 while WTI is currently above $62 per barrel. This has renewed confidence in the energy sector, setting the stage for a strong rally in the near term.
More Gains Ahead?
It seems that IXC might remain strong given a high weighted alpha of 10% and a low 20-day volatility of 9.62%. As a result, there is definitely still some promise for investors who want to ride on this surging ETF a little further.
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ISHARS-GLB EGY (IXC): ETF Research Reports
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