For investors seeking momentum, VanEck Vectors Oil Services ETF OIH is probably on radar. The fund just hit a 52-week high and is up about 51% from its 52-week low price of $164.41/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 of where it might be headed:
OIH in Focus
VanEck Vectors Oil Services ETF offers exposure to companies involved in oil services to the upstream oil sector, including oil equipment, oil services or oil drilling. It charges investors 35 basis points a year in fees (see: all the Energy ETFs here).
Why the Move?
The energy sector has been an area to watch lately given an oil price surge buoyed by supply disruptions and unprecedented demand. Oil price has been on the rise and is approaching $100 per barrel. The geopolitical tensions between Russia and Ukraine and in the Middle East and frigid weather heightened concerns over tight energy supply amid increasing demand.
More Gains Ahead?
Currently, OIH has a Zacks ETF Rank #3 (Hold) with a High-risk outlook. Therefore, it is hard to get a handle on its future returns one way or the other. However, many of the segments that make up this ETF have a strong Zacks Industry Rank. So, there is definitely some promise for those who want to ride this surging ETF a little further.
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VanEck Oil Services ETF (OIH): ETF Research Reports
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
