For investors seeking momentum, the Texas Capital Texas Oil Index ETF OILT is probably on the radar now. The fund just hit a 52-week high and is up 50.5% from its 52-week low price of $18.22 per share.
But are there more gains in store for this ETF? Let’s take a quick look at the fund and its near-term outlook to get a better sense of where it might head.
OILT in Focus
The fund provides exposure to companies that extract oil and gas within Texas. The fund charges 35 basis points (bps) in annual fees (See: all Energy ETFs here).
What Led to the Rise?
Geopolitical tensions, specifically the risk of U.S. strikes on Iran and potential closures of the Strait of Hormuz, have been pushing oil prices lately. This might have led OILT to touch a new 52-week high now. Additionally, strong U.S. petroleum net exports and a "rotation" out of fatigued AI tech into undervalued energy stocks are likely to have provided a solid tailwind to this fund.
More Gains Ahead?
OILT may continue its strong performance in the near term, with a positive weighted alpha of 20.87 (as per Barchart.com), which suggests a further rally.
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Texas Capital Texas Oil Index ETF (OILT): ETF Research ReportsThis article originally published on Zacks Investment Research (zacks.com).
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