Brent Oil ETF (BNO) Hits a New 52-Week High – January 11, 2018

9

Investors seeking momentum may have US Brent Oil ETF (BNO Free Report) on radar now. The fund recently hit a new 52-week high. Shares of BNO are up approximately 58.2% from their 52-week low of $11.88/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.

BNO in Focus

BNO focuses on providing exposure to the price movements of Brent Crude oil. This fund invests in listed crude oil futures contracts and other oil-related futures, forwards and swap contracts. BNO charges 90 basis points in fee per year and has AUM of $96.9 million (see all Energy ETFs here).

Why the move?

Brent crude prices reached a three-year high of $69.37 a barrel on Wednesday, the highest since May 2015. OPEC production cuts coupled with a fall in U.S. stockpiles made this possible. Coming to the crude inventory data in the United States, inventories fell around 5 million barrels in the week to January 5, 2018 to 419.5 million barrels.

More Gains Ahead?

BNO has a weighted alpha of 34.90. 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 >>

 

Source