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Should You Invest in the Strive U.S. Energy ETF (DRLL)?
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Designed to provide broad exposure to the Energy - Broad segment of the equity market, the Strive U.S. Energy ETF (DRLL - Free Report) is a passively managed exchange traded fund launched on 08/09/2022.
While an excellent vehicle for long term investors, passively managed ETFs are a popular choice among institutional and retail investors due to their low costs, transparency, flexibility, and tax efficiency.
Sector ETFs also provide investors access to a broad group of companies in particular sectors that offer low risk and diversified exposure. Energy - Broad is one of the 16 broad Zacks sectors within the Zacks Industry classification. It is currently ranked 9, placing it in bottom 44%.
Index Details
The fund is sponsored by Strive Etfs. It has amassed assets over $359.49 million, making it one of the average sized ETFs attempting to match the performance of the Energy - Broad segment of the equity market. DRLL seeks to match the performance of the SOLACTIVE US ENERGY REGULATED CAPPED ID before fees and expenses.
The Solactive United States Energy Regulated Capped Index composes of U.S. listed equities in the energy sector.
Costs
Since cheaper funds tend to produce better results than more expensive funds, assuming all other factors remain equal, it is important for investors to pay attention to an ETF's expense ratio.
Annual operating expenses for this ETF are 0.41%, making it on par with most peer products in the space.
It has a 12-month trailing dividend yield of 2.62%.
Sector Exposure and Top Holdings
While ETFs offer diversified exposure, which minimizes single stock risk, a deep look into a fund's holdings is a valuable exercise. And, most ETFs are very transparent products that disclose their holdings on a daily basis.
This ETF has heaviest allocation in the Energy sector--about 95.20% of the portfolio.
Looking at individual holdings, Exxon Mobil Corp (XOM - Free Report) accounts for about 22.53% of total assets, followed by Chevron Corp (CVX - Free Report) and Conocophillips (COP - Free Report) .
The top 10 holdings account for about 64.82% of total assets under management.
Performance and Risk
Year-to-date, the Strive U.S. Energy ETF return is roughly 14.38% so far, and it's up approximately 17.05% over the last 12 months (as of 04/29/2024). DRLL has traded between $25.85 and $32.49 in this past 52-week period.
The ETF has a beta of 0.89 and standard deviation of 23.18% for the trailing three-year period. With about 63 holdings, it effectively diversifies company-specific risk.
Alternatives
Strive U.S. Energy ETF holds a Zacks ETF Rank of 2 (Buy), which is based on expected asset class return, expense ratio, and momentum, among other factors. Because of this, DRLL is a great option for investors seeking exposure to the Energy ETFs segment of the market. There are other additional ETFs in the space that investors could consider as well.
Vanguard Energy ETF (VDE - Free Report) tracks MSCI US Investable Market Energy 25/50 Index and the Energy Select Sector SPDR ETF (XLE - Free Report) tracks Energy Select Sector Index. Vanguard Energy ETF has $8.91 billion in assets, Energy Select Sector SPDR ETF has $40.88 billion. VDE has an expense ratio of 0.10% and XLE charges 0.09%.
Bottom Line
To learn more about this product and other ETFs, screen for products that match your investment objectives and read articles on latest developments in the ETF investing universe, please visit Zacks ETF Center.
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Should You Invest in the Strive U.S. Energy ETF (DRLL)?
Designed to provide broad exposure to the Energy - Broad segment of the equity market, the Strive U.S. Energy ETF (DRLL - Free Report) is a passively managed exchange traded fund launched on 08/09/2022.
While an excellent vehicle for long term investors, passively managed ETFs are a popular choice among institutional and retail investors due to their low costs, transparency, flexibility, and tax efficiency.
Sector ETFs also provide investors access to a broad group of companies in particular sectors that offer low risk and diversified exposure. Energy - Broad is one of the 16 broad Zacks sectors within the Zacks Industry classification. It is currently ranked 9, placing it in bottom 44%.
Index Details
The fund is sponsored by Strive Etfs. It has amassed assets over $359.49 million, making it one of the average sized ETFs attempting to match the performance of the Energy - Broad segment of the equity market. DRLL seeks to match the performance of the SOLACTIVE US ENERGY REGULATED CAPPED ID before fees and expenses.
The Solactive United States Energy Regulated Capped Index composes of U.S. listed equities in the energy sector.
Costs
Since cheaper funds tend to produce better results than more expensive funds, assuming all other factors remain equal, it is important for investors to pay attention to an ETF's expense ratio.
Annual operating expenses for this ETF are 0.41%, making it on par with most peer products in the space.
It has a 12-month trailing dividend yield of 2.62%.
Sector Exposure and Top Holdings
While ETFs offer diversified exposure, which minimizes single stock risk, a deep look into a fund's holdings is a valuable exercise. And, most ETFs are very transparent products that disclose their holdings on a daily basis.
This ETF has heaviest allocation in the Energy sector--about 95.20% of the portfolio.
Looking at individual holdings, Exxon Mobil Corp (XOM - Free Report) accounts for about 22.53% of total assets, followed by Chevron Corp (CVX - Free Report) and Conocophillips (COP - Free Report) .
The top 10 holdings account for about 64.82% of total assets under management.
Performance and Risk
Year-to-date, the Strive U.S. Energy ETF return is roughly 14.38% so far, and it's up approximately 17.05% over the last 12 months (as of 04/29/2024). DRLL has traded between $25.85 and $32.49 in this past 52-week period.
The ETF has a beta of 0.89 and standard deviation of 23.18% for the trailing three-year period. With about 63 holdings, it effectively diversifies company-specific risk.
Alternatives
Strive U.S. Energy ETF holds a Zacks ETF Rank of 2 (Buy), which is based on expected asset class return, expense ratio, and momentum, among other factors. Because of this, DRLL is a great option for investors seeking exposure to the Energy ETFs segment of the market. There are other additional ETFs in the space that investors could consider as well.
Vanguard Energy ETF (VDE - Free Report) tracks MSCI US Investable Market Energy 25/50 Index and the Energy Select Sector SPDR ETF (XLE - Free Report) tracks Energy Select Sector Index. Vanguard Energy ETF has $8.91 billion in assets, Energy Select Sector SPDR ETF has $40.88 billion. VDE has an expense ratio of 0.10% and XLE charges 0.09%.
Bottom Line
To learn more about this product and other ETFs, screen for products that match your investment objectives and read articles on latest developments in the ETF investing universe, please visit Zacks ETF Center.