ALPS Clean Energy ETF ACES is probably on the radar for investors seeking momentum. The fund just hit a 52-week high and has moved up 77.12% from its 52-week low price of $23.82 per share.
Are more gains in store for this ETF? Let us 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.
ACES in Focus
The underlying CIBC Atlas Clean Energy Index utilizes a rules-based methodology, which is designed to provide exposure to a diverse set of U.S. and Canadian companies involved in the clean energy sector, including renewables and clean technology. The product charges 0.55% in annual fees (see: all Alternative Energy ETFs).
Why the Move?
The clean energy sector has emerged as a key area to watch amid surging oil prices, driven by prolonged Middle East tensions and the continued closure of the Strait of Hormuz, which have disrupted global energy markets. Heightened concerns over energy security are expected to act as a major catalyst, accelerating the shift toward clean and renewable energy sources. Additionally, according to forecasts by the International Energy Agency (IEA), total investment in renewable power is projected to reach approximately $665 billion.
More Gains Ahead?
ACES might continue its strong performance in the near term, with a positive weighted alpha of 73.17 (as per Barchart.com), which gives cues of a further rally.
Boost Your Portfolio with Our Top ETF Insights
Zacks' exclusive Fund Newsletter delivers actionable information, top news and analysis, as well as top-performing ETFs, straight to your inbox every week.
Don’t miss out on this valuable resource. It’s free!
Get it now >>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
ALPS Clean Energy ETF (ACES): ETF Research Reports
This article originally published on Zacks Investment Research (zacks.com).