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Energy ETF (XLE) Hits New 52-Week High
For investors seeking momentum, Energy Select Sector SPDR (XLE - Free Report) is probably on radar. The fund just hit a 52-week high and is up about 80% from its 52-week low price of $51.66/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:
XLE in Focus
This fund targets the energy sector and provides exposure to companies in the oil, gas and consumable fuel, energy equipment and services industries. It charges investors 10 basis points a year in fees (see: all the Energy ETFs here).
Why the Move?
The energy sector has been an area to watch lately, given a rise in oil prices. The news that China had eased some of its COVID restrictions has fueled hopes of a recovery in economic activity and demand at the world's top crude importer. The broad market rally also added to the strength.
More Gains Ahead?
Currently, XLE has a Zacks ETF Rank #1 (Strong Buy) with a High risk outlook, suggesting that the outperformance could continue in the months ahead. However, many spaces that make up this ETF have a strong Zacks Industry Rank. So, there is definitely some promise for those who want to ride this surging ETF a little further.