Zacks
0
All posts from Zacks
Zacks in Our Research. Your Success.,

Energy ETF (DBE) Hits New 52-Week High

Investors seeking momentum may have PowerShares DB Energy Fund DBE on radar now. The fund recently hit a new 52-week high. Shares of DBE are up approximately 33.5% from their 52-week low of $10.78/share.


But could there be more gains ahead for this ETF? Let’s take a look at the fund and the near-term outlook to get a better idea of where it might be headed.


DBE in Focus


DBE focuses on providing exposure to the energy sector. From a sector look, it has top exposure to Gasoline, Brent crude and NY Harbor ULSD, with 24.7%, 23.0% and 22.3% exposure, respectively. It charges 78 basis points in fees per year and has AUM of $179.1 million (see all Energy ETFs here).


Why the Move?


Recently, oil prices seem to have regained stability, as it touched a six-week high. Increased geopolitical risks have contributed to the gains. Saudi Arabia Prince Mohammed bin Salman looked to tighten his grip on power by ordering a crackdown with arrests of royals, ministers and investors. Moreover, tensions with Iran increased as a missile was fired toward Riyadh last weekend. OPEC is also widely expected to extend production cuts and a huge reduction in U.S. oil drilling provided support to prices.


More Gains Ahead?


Currently, DBE has a weighted alpha of 28.8.  So, there is a promising outlook ahead for those who want to ride this surging ETF a shade further.


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 >>









 


Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
 
PWRSH-DB EGY FD (DBE): ETF Research Reports
 
To read this article on Zacks.com click here.
 
Zacks Investment Research
 
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report