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Gasoline ETF (UGA) Hits New 52-Week High

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For investors seeking momentum, United States Gasoline ETF (UGA - Free Report) is probably on radar. The fund just hit a 52-week high and is up 118.6% from its 52-week low price of $32.18/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 of where it might be headed:

UGA in Focus

United States Gasoline ETF is designed to track in percentage terms the movement of gasoline price. The benchmark futures contract is the futures contract on gasoline as traded on the NYMEX. If the near-month contract is within two weeks of expiration, the benchmark will be the next-month contract to expire. The product charges 90 bps in annual fees (see: all the Energy ETFs here).

Why the Move?

Gasoline has been an area to watch lately, given that prices at the pump have been surging. Russia's invasion of Ukraine has resulted in shockwaves in global energy markets, heightening concerns over tight energy supply amid increasing demand.

More Gains Ahead?

It seems that UGA might remain strong given its weighted alpha of 121.20 and a 20-day volatility of 41.00%. As a result, there is definitely still some promise for investors who want to ride on this surging ETF a little further.
 


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