- (0:45) – The Future Outlook For Oil: Should Investors Be Buying?
- (6:30) – Breaking Down The Energy Sector: The Many Sub-sectors of the Market
- (10:45) – What Is The Best Way To Gain Exposure To Energy?
- (14:10) – ALPS Alerian MLP ETF: AMLP
- (17:15) – Energy Weighting Increased Across Broad Market ETFs: What Is The Benefit?
- (22:40) – Are Commodity ETFs Are Good Way To Invest In Energy?
- (26:30) – Big Oil’s Investment Into Alternative Energy
- Podcast@Zacks.com
In this episode of ETF Spotlight, I speak with Stacey Morris, head of energy research at VettaFi, about investing in the hot energy sector using ETFs.
Energy is the best performing sector again this year, up about 60%. Can the positive momentum continue after two phenomenal years? We discuss the key investment themes for the space.
Most popular products in the sector–the Energy Select Sector SPDR ETF XLE and the Vanguard Energy ETF VDE–are market-cap-weighted. Top holdings–Exxon Mobil XOM and Chevron CVX–account for about 40% of their portfolios.
The SPDR S&P Oil & Gas Exploration & Production ETF XOP is an equal-weighted ETF. It tilts away from the oil giants and toward small- and mid-cap companies. Occidental Petroleum OXY is the top holding currently. Investors should however remember that E&P companies have high sensitivity to commodity prices.
The VanEck Oil Services ETF OIH invests in 25 largest and most liquid oil services companies. Schlumberger SLB, which rebranded as SLB last month, and Halliburton’s HAL are its top holdings. Oilfield services stocks are generally less volatile than those of oil producers.
The Alerian MLP ETF AMLP holds energy infrastructure MLPs that earn most of their cash flow from midstream activities.
Tune in to the podcast to learn more.
Make sure to be on the lookout for the next edition of ETF Spotlight! If you have any comments or questions, please email podcast@zacks.com.
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Chevron Corporation (CVX): Free Stock Analysis Report
Exxon Mobil Corporation (XOM): Free Stock Analysis Report
Schlumberger Limited (SLB): Free Stock Analysis Report
Halliburton Company (HAL): Free Stock Analysis Report
Occidental Petroleum Corporation (OXY): Free Stock Analysis Report
Energy Select Sector SPDR ETF (XLE): ETF Research Reports
Alerian MLP ETF (AMLP): ETF Research Reports
SPDR S&P Oil & Gas Exploration & Production ETF (XOP): ETF Research Reports
Vanguard Energy ETF (VDE): ETF Research Reports
VanEck Oil Services ETF (OIH): ETF Research Reports
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Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
Image and article originally from www.nasdaq.com. Read the original article here.