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PXE - ETF AI Analysis

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PXE

Invesco Dynamic Energy Exploration & Production ETF (PXE)

Rating:71Outperform
Price Target:
PXE, the Invesco Dynamic Energy Exploration & Production ETF, earns a solid rating driven mainly by strong, well-run energy companies like Diamondback Energy (FANG) and ConocoPhillips (COP), which show robust financial performance, good cash flow, and supportive earnings calls. Other holdings such as Phillips 66 (PSX) and APA also add to the fund’s quality through solid profitability and cash management, though names like Par Pacific (PARR) and Occidental (OXY) introduce some caution due to weaker technical trends, valuation concerns, and cash flow challenges. The main risk is that the fund is heavily focused on the energy exploration and production space, so it is sensitive to swings in energy prices and sector-specific volatility.
Positive Factors
Strong Recent Performance
The ETF has delivered strong gains so far this year, showing solid momentum over the recent months.
Leading Energy Companies in Top Holdings
Many of the largest positions, including well-known energy producers and refiners, have shown strong year-to-date performance, helping drive the fund’s returns.
Targeted Exposure to Energy Sector
The fund offers focused exposure to the energy exploration and production space, which can benefit investors who want to bet on continued strength in this sector.
Negative Factors
High Sector Concentration
With almost all assets in the energy sector, the ETF is highly sensitive to downturns in oil and gas markets.
Limited Geographic Diversification
The portfolio is almost entirely invested in U.S. companies, offering little protection if the U.S. energy market weakens.
Relatively High Expense Ratio
The fund’s management fee is on the higher side for an ETF, which can eat into long-term returns compared with lower-cost alternatives.

PXE vs. SPDR S&P 500 ETF (SPY)

PXE Summary

The Invesco Dynamic Energy Exploration & Production ETF (PXE) tracks the Dynamic Energy Exploration & Production Intellidex Index, focusing on U.S. energy companies involved in oil, gas, and related fuels. It holds well-known names like Valero Energy and Marathon Petroleum, along with other exploration and production firms. An investor might consider PXE if they want targeted exposure to the energy sector and believe oil and gas companies could benefit from higher energy demand or rising commodity prices. However, this ETF is heavily tied to the energy market, so its price can swing sharply with oil and gas prices and overall market conditions.
How much will it cost me?The Invesco Dynamic Energy Exploration & Production ETF (PXE) has an expense ratio of 0.61%, meaning you’ll pay $6.10 per year for every $1,000 invested. This is higher than average for ETFs because it is actively managed, focusing on a specialized niche in the energy sector. Active management typically involves more research and trading, which increases costs.
What would affect this ETF?The PXE ETF, focused on U.S. energy companies, could benefit from rising oil and gas prices, increased demand for energy, and advancements in extraction technologies. However, it may face challenges from regulatory changes, shifts toward renewable energy, and economic slowdowns that reduce energy consumption. Its reliance on the volatile energy sector makes it sensitive to global geopolitical events and fluctuations in commodity prices.

PXE Top 10 Holdings

PXE is a pure play on U.S. energy, with the fund’s story driven by a tight cluster of exploration, production, and refining names. ConocoPhillips, Diamondback, and Occidental have been steady climbers over the past few months, helping power the ETF as oil-focused producers stay in favor. Refiners like Valero and Marathon Petroleum are more mixed, recently losing a bit of steam after earlier strength. On the weaker side, EQT and especially Expand Energy have been lagging, acting as small anchors on an otherwise rising, highly concentrated energy portfolio.
Name
Company Name
Weight %
Market Value
Market Cap
Yearly Gain
Overall Rating
Valero Energy5.29%$6.44M$70.51B107.62%
69
Neutral
Marathon Petroleum5.14%$6.26M$66.01B65.15%
66
Neutral
Diamondback5.03%$6.12M$54.80B42.52%
81
Outperform
Occidental Petroleum4.87%$5.93M$56.65B41.37%
67
Neutral
Conocophillips4.86%$5.92M$148.41B30.94%
78
Outperform
Phillips 664.70%$5.72M$65.30B55.13%
73
Outperform
EQT4.44%$5.40M$36.85B14.71%
76
Outperform
Expand Energy4.12%$5.02M$23.18B-10.09%
71
Outperform
Par Pacific Holdings3.78%$4.60M$3.18B339.55%
67
Neutral
APA3.24%$3.94M$13.33B132.20%
73
Outperform

PXE Technical Analysis

Technical Analysis Sentiment
Positive
Last Price
Price Trends
50DMA
36.10
Positive
100DMA
32.69
Positive
200DMA
30.57
Positive
Market Momentum
MACD
0.19
Negative
RSI
61.93
Neutral
STOCH
94.10
Negative
Evaluating momentum and price trends is crucial in ETF analysis to make informed investment decisions. For PXE, the sentiment is Positive. The current price of undefined is equal to the 20-day moving average (MA) of 36.79, equal to the 50-day MA of 36.10, and equal to the 200-day MA of 30.57, indicating a bullish trend. The MACD of 0.19 indicates Negative momentum. The RSI at 61.93 is Neutral, neither overbought nor oversold. The STOCH value of 94.10 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for PXE.

PXE Peer Comparison

Comparison Results
Name
Price
Price Target
AUM
Expense Ratio
Overall Rating
$123.92M0.61%
71
Outperform
$881.91M0.40%
71
Outperform
$750.95M0.57%
71
Outperform
$603.83M0.40%
74
Outperform
$589.47M0.38%
73
Outperform
$288.91M0.41%
72
Outperform
Performance Comparison
Ticker
Company Name
Price
Change
% Change
PXE
Invesco Dynamic Energy Exploration & Production ETF
38.49
14.17
58.26%
TPYP
Tortoise North American Pipeline Fund
FCG
First Trust Natural Gas ETF
RSPG
Invesco S&P 500 Equal Weight Energy ETF
IEO
iShares U.S. Oil & Gas Exploration & Production ETF
DRLL
Strive U.S. Energy ETF
Glossary
BuyAn ETF rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the ETF is likely to deliver higher returns compared to other ETFs in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldAn ETF rated as a "Hold" s expected to perform in line with the overall market or a specific benchmark. This rating indicates that the ETF is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellAn ETF rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the ETF may deliver lower returns compared to other ETFs in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
DisclaimerThis AI Analyst ETF Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in ETFs carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.Date of analysis: ―
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