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Oil ETF (DBO) Hits New 52-Week High

Sanghamitra Saha
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For investors seeking momentum, Invesco DB Oil Fund DBO is probably on radar now. The fund just hit a 52-week high and is up about 53.1% from its 52-week low price of $8.46/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:

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 fund charges 78 bps in fees (see all Energy ETFs here).

Why the Move?

Oil prices have been on a tear thanks to the decline in U.S. inventories and robust U.S. gasoline demand. Plus, chances of OPEC not boosting output to make up for the shrinking supplies from Iran also gave a boost to oil prices, per the source.

More Gains Ahead?

It seems that DBO might remain strong given a positive weighted alpha of 46.00. 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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PWRSH-DB OIL FD (DBO): ETF Research Reports
 
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