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Should You Invest in the Strive U.S. Energy ETF (DRLL)?
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If you're interested in broad exposure to the Energy - Broad segment of the equity market, look no further than the Strive U.S. Energy ETF (DRLL - Free Report) , a passively managed exchange traded fund launched on 08/09/2022.
Passively managed ETFs are becoming increasingly popular with institutional as well as retail investors due to their low cost, transparency, flexibility and tax efficiency. They are excellent vehicles for long term investors.
Additionally, sector ETFs offer convenient ways to gain low risk and diversified exposure to a broad group of companies in particular sectors. Energy - Broad is one of the 16 broad Zacks sectors within the Zacks Industry classification. It is currently ranked 15, placing it in bottom 6%.
Index Details
The fund is sponsored by Strive Etfs. It has amassed assets over $332.73 million, making it one of the average sized ETFs attempting to match the performance of the Energy - Broad segment of the equity market. DRLL seeks to match the performance of the SOLACTIVE US ENERGY REGULATED CAPPED ID before fees and expenses.
The Solactive United States Energy Regulated Capped Index composes of U.S. listed equities in the energy sector.
Costs
Expense ratios are an important factor in the return of an ETF and in the long term, cheaper funds can significantly outperform their more expensive counterparts, other things remaining the same.
Annual operating expenses for this ETF are 0.41%, making it on par with most peer products in the space.
It has a 12-month trailing dividend yield of 2.13%.
Sector Exposure and Top Holdings
It is important to delve into an ETF's holdings before investing despite the many upsides to these kinds of funds like diversified exposure, which minimizes single stock risk. And, most ETFs are very transparent products that disclose their holdings on a daily basis.
This ETF has heaviest allocation in the Energy sector--about 93.60% of the portfolio.
Looking at individual holdings, Exxon Mobil Corp (XOM - Free Report) accounts for about 22.77% of total assets, followed by Chevron Corp New (CVX - Free Report) and Conocophillips (COP - Free Report) .
The top 10 holdings account for about 66.74% of total assets under management.
Performance and Risk
The ETF has lost about -7.82% so far this year.
With about 62 holdings, it effectively diversifies company-specific risk.
Alternatives
Strive U.S. Energy ETF carries a Zacks ETF Rank of 3 (Hold), which is based on expected asset class return, expense ratio, and momentum, among other factors. Thus, DRLL is a sufficient option for those seeking exposure to the Energy ETFs area of the market. Investors might also want to consider some other ETF options in the space.
Vanguard Energy ETF (VDE - Free Report) tracks MSCI US Investable Market Energy 25/50 Index and the Energy Select Sector SPDR ETF (XLE - Free Report) tracks Energy Select Sector Index. Vanguard Energy ETF has $7.27 billion in assets, Energy Select Sector SPDR ETF has $33.43 billion. VDE has an expense ratio of 0.10% and XLE charges 0.10%.
Bottom Line
To learn more about this product and other ETFs, screen for products that match your investment objectives and read articles on latest developments in the ETF investing universe, please visit Zacks ETF Center.
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Should You Invest in the Strive U.S. Energy ETF (DRLL)?
If you're interested in broad exposure to the Energy - Broad segment of the equity market, look no further than the Strive U.S. Energy ETF (DRLL - Free Report) , a passively managed exchange traded fund launched on 08/09/2022.
Passively managed ETFs are becoming increasingly popular with institutional as well as retail investors due to their low cost, transparency, flexibility and tax efficiency. They are excellent vehicles for long term investors.
Additionally, sector ETFs offer convenient ways to gain low risk and diversified exposure to a broad group of companies in particular sectors. Energy - Broad is one of the 16 broad Zacks sectors within the Zacks Industry classification. It is currently ranked 15, placing it in bottom 6%.
Index Details
The fund is sponsored by Strive Etfs. It has amassed assets over $332.73 million, making it one of the average sized ETFs attempting to match the performance of the Energy - Broad segment of the equity market. DRLL seeks to match the performance of the SOLACTIVE US ENERGY REGULATED CAPPED ID before fees and expenses.
The Solactive United States Energy Regulated Capped Index composes of U.S. listed equities in the energy sector.
Costs
Expense ratios are an important factor in the return of an ETF and in the long term, cheaper funds can significantly outperform their more expensive counterparts, other things remaining the same.
Annual operating expenses for this ETF are 0.41%, making it on par with most peer products in the space.
It has a 12-month trailing dividend yield of 2.13%.
Sector Exposure and Top Holdings
It is important to delve into an ETF's holdings before investing despite the many upsides to these kinds of funds like diversified exposure, which minimizes single stock risk. And, most ETFs are very transparent products that disclose their holdings on a daily basis.
This ETF has heaviest allocation in the Energy sector--about 93.60% of the portfolio.
Looking at individual holdings, Exxon Mobil Corp (XOM - Free Report) accounts for about 22.77% of total assets, followed by Chevron Corp New (CVX - Free Report) and Conocophillips (COP - Free Report) .
The top 10 holdings account for about 66.74% of total assets under management.
Performance and Risk
The ETF has lost about -7.82% so far this year.
With about 62 holdings, it effectively diversifies company-specific risk.
Alternatives
Strive U.S. Energy ETF carries a Zacks ETF Rank of 3 (Hold), which is based on expected asset class return, expense ratio, and momentum, among other factors. Thus, DRLL is a sufficient option for those seeking exposure to the Energy ETFs area of the market. Investors might also want to consider some other ETF options in the space.
Vanguard Energy ETF (VDE - Free Report) tracks MSCI US Investable Market Energy 25/50 Index and the Energy Select Sector SPDR ETF (XLE - Free Report) tracks Energy Select Sector Index. Vanguard Energy ETF has $7.27 billion in assets, Energy Select Sector SPDR ETF has $33.43 billion. VDE has an expense ratio of 0.10% and XLE charges 0.10%.
Bottom Line
To learn more about this product and other ETFs, screen for products that match your investment objectives and read articles on latest developments in the ETF investing universe, please visit Zacks ETF Center.