Photo by Maxim Hopman on Unsplash
For investors seeking momentum, iShares Global Energy ETF (IXC) is probably on radar. The fund just hit a 52-week high and is up 31% from its 52-week low price of $31.91/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:
IXC in Focus
iShares Global Energy ETF offers global exposure to companies that produce and distribute oil and gas. It has key holdings in integrated oil & gas, and oil & gas exploration & production industry. The fund has 0.44% in expense ratio.
Why the Move?
The energy segment of the broad equity market has been an area to watch lately, given the soaring oil prices. Oil rallied to $95 per barrel, driven by strong demand and supply cuts from OPEC+ leaders, Saudi Arabia and Russia. Additionally, expectations of a large crude deficit in the fourth quarter and signs of economic recovery in China added to the strength.
More Gains Ahead?
It seems that IXC might remain strong, given a higher weighted alpha of 25.20 and a low 20-day volatility of 12.83%. As a result, there is definitely still some promise for risk-aggressive investors who want to ride on this surging ETF.
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