The Invesco Dynamic Energy Exploration & Production ETF (PXE) ranks among the best performing ETFs year-to-date.
PXE has returned 49.9% year-to-date and 9.8% month-on-month, according to VettaFi. During the same period, the fund recorded net inflows of $77 million, totaling $270 million in assets under management. The fund charges an expense ratio of 63 basis points.
At its 2022 peak on June 7, the fund had returned 87.7%, before a sell-off in energy stocks took place, sending stock prices tumbling across the sector. Buoyed by strong growth in July, the fund has since rebounded to its mid-May valuation and momentum in the sector is unlikely to falter.
PXE provides exposure to the exploration and production sub-sector of the domestic energy market, making it a potentially useful tool for those looking to target the actions of companies responsible for the discovery and access to new oil and gas deposits, according to VettaFi.
PXE can be useful as a tactical overlay or as part of a sector rotation strategy. PXE is part of PowerShares’ Intellidex suite of products, which means this ETF is linked to an index designed to outperform traditional capitalization-weighted benchmarks.
The index carefully assesses companies on a variety of investment merit criteria, including price momentum, earnings momentum, quality, management action and value, according to Invesco.
The index is made up of securities of 30 US companies involved in the exploration and production of natural resources used to produce energy. These companies are primarily engaged in the exploration, extraction and production of crude oil and natural gas from onshore or offshore wells. These businesses include petroleum refineries that process crude oil into finished products, such as gasoline and automotive lubricants, and businesses involved in the gathering and processing of natural gas and the manufacture of natural gas liquid.
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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.