We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Image: Bigstock
Energy ETF (FCG) Hits New 52-Week High
For investors seeking momentum, First Trust Natural Gas ETF (FCG - Free Report) is probably on the radar. The fund just hit a 52-week high and is up about 136% from its 52-week low price of $12.10/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:
FCG in Focus
First Trust ISE-Revere Natural Gas Index Fund offers exposure to U.S. companies involved in the exploration and production of natural gas. It charges investors 60 basis points a year in fees (see: all the Energy ETFs here).
Why the Move?
The energy sector has been an area to watch lately, given the oil price surge. Oil resumed its strength and reached its highest levels since March. The rally is driven by the easing of COVID-19 restrictions in China and the European Union agreement to ban 90% of Russian crude by the end of the year. The dual news will continue to bolster demand and exacerbate worries over the already tightening supply.
More Gains Ahead?
Currently, FCG has a Zacks ETF Rank #2 (Buy) with a High-risk outlook, suggesting that the outperformance could continue in the months ahead. However, many spaces that make up this ETF have a strong Zacks Industry Rank. So, there is definitely some promise for those who want to ride this surging ETF a little further.