For investors seeking momentum, SPDR S&P Oil & Gas Exploration & Production ETF (XOP - Free Report) isprobably on radar now. The fund just hit a 52-week high and is up over 81% from its 52-week low price of $22.06/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:
XOP in Focus
This product offers exposure to the oil and gas exploration and production industry. Western Refining (2.70%), California Resources Corp (2.47%) and Whiting Petroleum Corporation (2.41%) are top three holdings of the fund. The fund charges 35 bps in fees (see all Energy ETFs here).
Why the Move?
The energy fund appears to be a beneficiary of the oil price jump on hopes of an output curb in the OPEC meeting scheduled later this month. WTI and Brent crude surged over 4% yesterday.
More Gains Ahead?
The fund has a Zack ETF Rank #3 (Hold) with a High risk outlook. So, it is hard to get a handle on its future returns one way or another. However, it seems that XOP might continue with its strength given a positive weighted alpha of 19.90. As a result, there is definitely still some promise for investors who want to ride on this surging ETF.
Want key ETF info delivered straight to your inbox?
Zacks' free Fund Newsletter will brief you on top news and analysis, as well as top-performing ETFs, each week. Get it free >>