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.
Should You Invest in the Strive U.S. Energy ETF (DRLL)?
Read MoreHide Full Article
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.
An increasingly popular option among retail and institutional investors, passively managed ETFs offer low costs, transparency, flexibility, and tax efficiency; they are also excellent vehicles for long term investors.
Sector ETFs are also funds of convenience, offering many 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 14, placing it in bottom 13%.
Index Details
The fund is sponsored by Strive Etfs. It has amassed assets over $361.34 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 2.63%.
Sector Exposure and Top Holdings
Even though ETFs offer diversified exposure that minimizes single stock risk, investors should also look at the actual holdings inside the fund. Luckily, most ETFs are very transparent products that disclose their holdings on a daily basis.
This ETF has heaviest allocation in the Energy sector--about 94.20% of the portfolio.
Looking at individual holdings, Exxon Mobil Corp (XOM - Free Report) accounts for about 22.05% of total assets, followed by Chevron Corp New (CVX - Free Report) and Conocophillips (COP - Free Report) .
The top 10 holdings account for about 65.28% of total assets under management.
Performance and Risk
So far this year, DRLL return is roughly 1.72%, and is up about 11.53% in the last one year (as of 08/22/2023). During this past 52-week period, the fund has traded between $23.89 and $31.77.
With about 64 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 $8.37 billion in assets, Energy Select Sector SPDR ETF has $38.03 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.
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Bigstock
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.
An increasingly popular option among retail and institutional investors, passively managed ETFs offer low costs, transparency, flexibility, and tax efficiency; they are also excellent vehicles for long term investors.
Sector ETFs are also funds of convenience, offering many 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 14, placing it in bottom 13%.
Index Details
The fund is sponsored by Strive Etfs. It has amassed assets over $361.34 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 2.63%.
Sector Exposure and Top Holdings
Even though ETFs offer diversified exposure that minimizes single stock risk, investors should also look at the actual holdings inside the fund. Luckily, most ETFs are very transparent products that disclose their holdings on a daily basis.
This ETF has heaviest allocation in the Energy sector--about 94.20% of the portfolio.
Looking at individual holdings, Exxon Mobil Corp (XOM - Free Report) accounts for about 22.05% of total assets, followed by Chevron Corp New (CVX - Free Report) and Conocophillips (COP - Free Report) .
The top 10 holdings account for about 65.28% of total assets under management.
Performance and Risk
So far this year, DRLL return is roughly 1.72%, and is up about 11.53% in the last one year (as of 08/22/2023). During this past 52-week period, the fund has traded between $23.89 and $31.77.
With about 64 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 $8.37 billion in assets, Energy Select Sector SPDR ETF has $38.03 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.