Investors should steer clear of Guggenheim Canadian Energy Income ETF (ENY -Free Report) for now. The fund recently hit a new 52-week low. Shares of ENY are down roughly 18.5% from its 52-week high of $8.98/share.

But is more pain in store for this ETF? Let’s take a quick look at the fund and the near-term outlook to get a better idea of where it might be headed.

ENY in Focus

ENY focuses on providing exposure to the Canadian energy sector. It shifts its holdings between the Canadian royalty trust market and oil sands produces. ENY charges 66 basis points in fee per year and has AUM of $20.9 million (see all Canadian Equity ETFs here).

Why the move?

Lately, oil prices have been falling owing to an increase in shale production by the United States. OPEC predicts that crude oil supply will exceed crude oil demand in 2018 and that the United States will be the biggest factor driving supply. Moreover, Canadian companies with exposure to the energy sector have been facing headwinds in 2018, as short-sellers have been hurting stocks. The Canadian economy is also subject to risks stemming from NAFTA negotiations.

More Losses Ahead?

ENY has a weighted alpha of -18.40. So, the outlook for this fund remains quite bleak.