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Invesco DB Energy Fund (DBE) Hits a 52-Week High

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For investors looking for momentum, Invesco DB Energy Fund (DBE - Free Report) is probably a suitable pick. The fund just hit a 52-week high and is up 66.4% from its 52-week low price of $11.41/share.

Let’s take a look at the fund and its near-term outlook to gain an insight into where it might be headed:

DBE in Focus

Invesco DB Energy Fund seeks to track changes, whether positive or negative, in the level of the DBIQ Optimum Yield Energy Index Excess Return (DBIQ Opt Yield Energy Index ER or Index) plus the interest income from the fund's holdings of primarily US Treasury securities and money market income less the fund's expenses. It has AUM of $122.9 million and charges 77 basis points in annual fees.

Why the Move?

Investors are closely tracking the energy sector, which is showing strength as global demand and economic growth levels are on the path of recovery from the pandemic lows. The coronavirus vaccine rollout is gradually controlling the outbreak's spread across the globe. The optimism surrounding the reopening of global economies and increasing demand are painting a rosy picture for the cyclical sectors.

According to a CNBC article, energy stocks are witnessing the best year in more than three decades. The sector gained more than 47% in 2021. Oil prices have been rising since the beginning of 2022. The upside in crude oil prices is being triggered by various factors like easing Omicron variant concerns, protests in Kazakhstan and outages in Libya, causing supply shortages and less OPEC+ output. This is making funds like DBE an impressive investment option.

More Gains Ahead?

It seems like the Invesco DB Energy Fund will remain strong, with a positive weighted alpha of 59.57, which gives cues of a further rally.


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