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Oil ETF (USO) Hits New 52-Week High

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For investors seeking momentum, United States Oil Fund (USO - Free Report) is probably on radar. The fund just hit a 52-week high and is up 107% from its 52-week low price of $24.75/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:

USO in Focus

USO is the most popular ETF in the oil space with AUM of $2.5 billion. It seeks an average daily percentage change in USO’s net asset value, for any period of 30 successive valuation days, within plus/minus 10% of the average daily percentage change in the price of the Benchmark Oil Futures Contract over the same period. The fund has 0.83% in expense ratio (see: all the Energy ETFs here).

Why the Move?

The oil segment of the broad commodity market has been an area to watch lately given the soaring oil prices. Falling crude inventories, supply disruption in the Gulf of Mexico after two hurricanes and growing fuel demand are driving the oil price higher. Notably, U.S. crude stocks fell to the lowest level since October 2018.

More Gains Ahead?

It seems that USO might remain strong given a higher weighted alpha of 76.38 and a low 20-day volatility of 20.88%. 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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