Back to top
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.
Image: Bigstock
Oil ETF (USO) Hits New 52-Week High
For investors seeking momentum, United States Oil Fund (USO - Free Report) is probably on radar. The fund just hit a 52-week high and is up 67% from its 52-week low price of $39.27/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:
USO in Focus
USO is the most popular commodity ETF in the oil space. It seeks an average daily percentage change in USO’s net asset value, for any period of 30 successive valuation days, within plus/minus 10% of the average daily percentage change in the price of the Benchmark Oil Futures Contract over the same period. The fund has 0.83% in expense ratio (see: all the Energy ETFs here).
Why the Move?
The oil segment of the broad commodity market has been an area to watch lately given the soaring oil prices. Oil price is approaching $100 per barrel on escalating Russia-Ukraine tensions. This is because Russia is a major energy producer, and these tensions have added to the supply concerns, pushing oil prices higher.
More Gains Ahead?
It seems that USO might remain strong given a higher weighted alpha of 62.80 and a low 20-day volatility of 20.73%. As a result, there is definitely still some promise for risk-aggressive investors who want to ride on this surging ETF.