(WDEE) Invesco S&P World Energy - Ratings and Ratios

The Invesco S&P World Energy ESG UCITS ETF Acc (XETRA:WDEE) is a sector-specific exchange-traded fund that focuses on the global energy sector, incorporating environmental, social, and governance (ESG) criteria. This ETF is listed on the XETRA exchange and is domiciled in Germany.

By tracking the Morningstar Global Energy NR USD index, the fund provides investors with exposure to a diversified portfolio of energy companies worldwide that meet specific ESG standards. The ESG criteria help in filtering out companies with poor sustainability practices, potentially reducing long-term risks associated with environmental degradation and social unrest.

From a technical standpoint, the ETFs price action indicates a short-term bearish trend, as its current price of 5.08 is below its 20-day, 50-day, and 200-day simple moving averages (SMA20: 5.10, SMA50: 5.26, SMA200: 5.51). The Average True Range (ATR) of 0.08, or 1.54%, suggests relatively low volatility. The 52-week high and low range (6.16 to 4.70) indicates the ETF has experienced significant price swings over the past year.

With Assets Under Management (AUM) of 15.97 million EUR, the fund is relatively small, which might impact liquidity. However, being a UCITS (Undertakings for the Collective Investment in Transferable Securities) compliant ETF, it adheres to strict European regulatory standards, potentially offering a layer of investor protection.

Forecasting future performance involves analyzing both technical indicators and fundamental data. Given the current bearish trend indicated by the moving averages and the relatively low volatility, a cautious approach is warranted. If the global energy demand continues to rise and companies within the funds portfolio maintain or improve their ESG standings, there could be potential for growth. Conversely, if the energy sector faces headwinds due to regulatory changes or a shift towards renewable energy sources, the ETFs performance might be negatively impacted. Based on the current technical data, a potential support level is around 4.70 (52W Low), and resistance is at 6.16 (52W High). A breakout above the SMA20 (5.10) could indicate a short-term bullish reversal, while a drop below the 52W Low might signal further downside.

To make an informed investment decision, its crucial to monitor the ETFs tracking performance against its benchmark, the Morningstar Global Energy NR USD index, and to stay updated on global energy trends and ESG regulatory developments.