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Energy ETF (FRAK) Hits New 52-Week High
Investors seeking momentum may have VanEck Vectors Unconventional Oil & Gas ETF on radar now. The fund recently hit a new 52-week high. Shares of FRAK are up approximately 211.6% from their 52-week low of $52.00/share.
But could there be more gains ahead for this ETF? Let’s take a look at the fund and the near-term outlook to get a better idea of where it might be headed.
FRAK In Focus
The underlying MVIS Global Unconventional Oil & Gas Index tracks the overall performance of companies involved in the exploration, development, extraction, and/or production of unconventional oil and natural gas.The fund charges 54 bps in fees.
Why The Move?
Oil and gas prices have been super-sturdy lately. Oil is hovering around a $80 level. The recent rally has been driven by supply disruptions and storage drawdowns as well as growing demand with the easing of pandemic restrictions. Meanwhile, natural gas prices spiked to a seven-year high buoyed by the growing concerns over tight winter supplies.
More Gains Ahead?
The fund has a positive weighted alpha of 161.89. So, there is a decent outlook ahead for those who want to ride this surging ETF a shade further.