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Should You Invest in the Strive U.S. Energy ETF (DRLL)?
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Designed to provide broad exposure to the Energy - Broad segment of the equity market, the Strive U.S. Energy ETF (DRLL - Free Report) is a passively managed exchange traded fund launched on 08/09/2022.
Retail and institutional investors increasingly turn to passively managed ETFs because they offer low costs, transparency, flexibility, and tax efficiency; these kind of funds are also 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 16, placing it in bottom 0%.
Index Details
The fund is sponsored by Strive Etfs. It has amassed assets over $328.78 million, making it one of the larger 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
When considering an ETF's total return, expense ratios are an important factor, and cheaper funds can significantly outperform their more expensive counterparts in the long term if all other factors remain equal.
Annual operating expenses for this ETF are 0.41%, making it one of the cheaper products in the space.
It has a 12-month trailing dividend yield of 2.96%.
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 95% of the portfolio.
Looking at individual holdings, Exxon Mobil Corp (XOM - Free Report) accounts for about 20.57% of total assets, followed by Chevron Corp New (CVX - Free Report) and Conocophillips (COP - Free Report) .
The top 10 holdings account for about 63.70% of total assets under management.
Performance and Risk
So far this year, DRLL has added roughly 1.75%, and is up about 3.14% in the last one year (as of 02/26/2024). During this past 52-week period, the fund has traded between $25.85 and $31.12.
The ETF has a beta of 0.87 and standard deviation of 24.20% for the trailing three-year period. With about 63 holdings, it effectively diversifies company-specific risk.
Alternatives
Strive U.S. Energy ETF holds a Zacks ETF Rank of 2 (Buy), which is based on expected asset class return, expense ratio, and momentum, among other factors. Because of this, DRLL is a great option for investors seeking exposure to the Energy ETFs segment of the market. There are other additional ETFs in the space that investors could consider as well.
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 $8.21 billion in assets, Energy Select Sector SPDR ETF has $35.85 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)?
Designed to provide broad exposure to the Energy - Broad segment of the equity market, the Strive U.S. Energy ETF (DRLL - Free Report) is a passively managed exchange traded fund launched on 08/09/2022.
Retail and institutional investors increasingly turn to passively managed ETFs because they offer low costs, transparency, flexibility, and tax efficiency; these kind of funds are also 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 16, placing it in bottom 0%.
Index Details
The fund is sponsored by Strive Etfs. It has amassed assets over $328.78 million, making it one of the larger 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
When considering an ETF's total return, expense ratios are an important factor, and cheaper funds can significantly outperform their more expensive counterparts in the long term if all other factors remain equal.
Annual operating expenses for this ETF are 0.41%, making it one of the cheaper products in the space.
It has a 12-month trailing dividend yield of 2.96%.
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 95% of the portfolio.
Looking at individual holdings, Exxon Mobil Corp (XOM - Free Report) accounts for about 20.57% of total assets, followed by Chevron Corp New (CVX - Free Report) and Conocophillips (COP - Free Report) .
The top 10 holdings account for about 63.70% of total assets under management.
Performance and Risk
So far this year, DRLL has added roughly 1.75%, and is up about 3.14% in the last one year (as of 02/26/2024). During this past 52-week period, the fund has traded between $25.85 and $31.12.
The ETF has a beta of 0.87 and standard deviation of 24.20% for the trailing three-year period. With about 63 holdings, it effectively diversifies company-specific risk.
Alternatives
Strive U.S. Energy ETF holds a Zacks ETF Rank of 2 (Buy), which is based on expected asset class return, expense ratio, and momentum, among other factors. Because of this, DRLL is a great option for investors seeking exposure to the Energy ETFs segment of the market. There are other additional ETFs in the space that investors could consider as well.
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 $8.21 billion in assets, Energy Select Sector SPDR ETF has $35.85 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.