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.
For investors seeking momentum, VanEck Vectors Oil Refiners ETF (CRAK - Free Report) is probably on radar now. The fund just hit a 52-week high and is up nearly 31.3% from its 52-week low price of $17.89/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:
CRAK in Focus
This fund offers global exposure to the largest and most liquid companies involved in crude oil refining, which includes gasoline, diesel, jet fuel, fuel oil, naphtha, and other petrochemicals, or have at least half of their assets devoted to the refining of crude oil. It holds a small basket of 26 stocks with each holding less than 8.3% share. American firms account for 33% share followed by Japan (13.4%). Other countries like India and Poland receive a single-digit allocation each. The ETF charges a bit higher fee of 59 bps compared to others in the energy space (see: all the energy ETFs here).
Why the Move?
As oil price logged in the worst first-half performance since 1998 that knocked down the entire energy sector, oil refining industry is shining. This is because it is negatively correlated with the price of oil with players in this industry using oil as an input for processing refined petroleum products like gasoline. Thus, lower oil prices are boosting margins for refiners, leading to healthy stock prices. This trend is likely to continue if crude prices (input costs) remain low or continue to fall further, leading to higher spreads. In such a scenario, refiners are expected to outperform the rest of the energy sector.
More Gains Ahead?
The fund might remain strong given a high weighted alpha of 28.73% and a low 20-day volatility of 12.84%. Further, many of the segments that make up this ETF have a strong Zacks Industry Rank. As a result, there is 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 >>
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Bigstock
Energy ETF (CRAK) Hits New 52-Week High
For investors seeking momentum, VanEck Vectors Oil Refiners ETF (CRAK - Free Report) is probably on radar now. The fund just hit a 52-week high and is up nearly 31.3% from its 52-week low price of $17.89/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:
CRAK in Focus
This fund offers global exposure to the largest and most liquid companies involved in crude oil refining, which includes gasoline, diesel, jet fuel, fuel oil, naphtha, and other petrochemicals, or have at least half of their assets devoted to the refining of crude oil. It holds a small basket of 26 stocks with each holding less than 8.3% share. American firms account for 33% share followed by Japan (13.4%). Other countries like India and Poland receive a single-digit allocation each. The ETF charges a bit higher fee of 59 bps compared to others in the energy space (see: all the energy ETFs here).
Why the Move?
As oil price logged in the worst first-half performance since 1998 that knocked down the entire energy sector, oil refining industry is shining. This is because it is negatively correlated with the price of oil with players in this industry using oil as an input for processing refined petroleum products like gasoline. Thus, lower oil prices are boosting margins for refiners, leading to healthy stock prices. This trend is likely to continue if crude prices (input costs) remain low or continue to fall further, leading to higher spreads. In such a scenario, refiners are expected to outperform the rest of the energy sector.
More Gains Ahead?
The fund might remain strong given a high weighted alpha of 28.73% and a low 20-day volatility of 12.84%. Further, many of the segments that make up this ETF have a strong Zacks Industry Rank. As a result, there is 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 >>