Breaking News
0
Ad-Free Version. Upgrade your Investing.com experience. Save up to 40% More details

Energy ETFs Set To Soar As Oil Price Rises

By Zacks Investment ResearchStock MarketsJan 19, 2020 11:00PM ET
www.investing.com/analysis/energy-etfs-set-to-soar-as-oil-price-rises-200500061
Energy ETFs Set To Soar As Oil Price Rises
By Zacks Investment Research   |  Jan 19, 2020 11:00PM ET
Saved. See Saved Items.
This article has already been saved in your Saved Items
 

Oil price jumped following political instability in the Middle East and North Africa that halted output and exports from key OPEC producers — Libya and Iraq. Crude oil futures climbed as much as 2% to $59.73 per barrel while Brent advanced as much as 1.8% to $66 per barrel.

The two large crude production bases in Libya have been shut down amid a military blockade, leading to supply disruption. A blockage of oil exports at Libya’s ports is expected to cut the country’s output by about 800,000 barrels a day. The National Oil Corporation warned that the stoppages could cut more than half of the nation’s crude output. It estimated that Libya’s production will be limited to about 72,000 barrels per day — the lowest level since August 2011 — once its storage tanks are full. Libya has been producing around 1.2 million barrels per day.

Meanwhile, Iraq temporarily stopped work in an oil field on Jan 19 and supply from a second production site is at risk as widespread unrest escalated in the OPEC’s second-biggest producer. The International Energy Agency said last week that supplies from Iraq are “potentially vulnerable” due to rising political risks in the country and the broader region (read: Bet on Oil Surge With These Leveraged ETFs).

Given this, we have highlighted five energy ETFs that could see some gains at least in the near term. However, these have a Zacks Rank #4 (Sell) or 5 (Strong Sell). Please note that our ranking system takes into account the asset class outlook, which was negative for energy and hence most of the ETFs in that space have a #4 or 5 Zacks Rank.

Energy Select Sector SPDR XLE (NYSE:XLE)

This is the largest and most popular ETF in the energy space with AUM of $10.8 billion and average daily volume of more than 14.7 million shares per day. Expense ratio comes in at 0.13%. The fund follows the Energy Select Sector Index and holds 28 securities in its basket (read: Can Energy ETFs Rebound as China Promises Ramped-up Purchases?).

SPDR S&P Oil & Gas Exploration & Production ETF (CSE:XOP)

This fund provides exposure to oil and gas exploration companies by tracking the S&P Oil & Gas Exploration & Production Select Industry Index. It has amassed $10.8 billion and holds 57 securities in its basket. The product charges 35 bps in annual fees and trades in average volume of 28.9 million shares per day.

VanEck Vectors Oil Services ETF (CA:OIH)

This fund tracks the MVIS U.S. Listed Oil Services 25 Index, which offers exposure to companies involved in oil services to the upstream oil sector, including oil equipment, oil services or oil drilling. Holding 25 stocks in its basket, it has amassed $668.6 million and charges 35 bps in annual fees. Volume is heavy, exchanging 10 million shares in hand per day.

SPDR S&P Oil & Gas Equipment & Services (NYSE:XES) ETF XES

This fund tracks the S&P Oil & Gas Equipment & Services Select Industry Index, which measures the performance of the companies engaged in the oil and gas equipment and services industry. It holds 31 stocks in its basket with AUM of $168.8 million. It trades in average daily volume of 1.5 million shares a day and charges 35 bps in fees per year from investors (read: ETFs to Gain & Lose From Higher Oil Price).


iShares U.S. Oil Equipment & Services ETF IEZ

With AUM of $83.2 million, this ETF offers exposure to U.S. companies that provide equipment and services for oil exploration and extraction by tracking the Dow Jones U.S. Select Oil Equipment & Services Index. It holds 31 securities in its basket and charges 42 bps in fees per year. The product sees moderate average daily volume of 72,000 shares.

Want key ETF info delivered straight to your inbox?

Zacks’ free Fund Newsletter will brief you on top news and analysis, as well as top-performing ETFs, each week. Get it free >>



SPDR S&P Oil & Gas Equipment & Services ETF (XES): ETF Research Reports

iShares U.S. Oil Equipment & Services ETF (IEZ): ETF Research Reports

Energy Select Sector SPDR Fund (XLE): ETF Research Reports

SPDR S&P Oil & Gas Exploration & Production ETF (XOP): ETF Research Reports

VanEck Vectors Oil Services ETF (OIH): ETF Research Reports

Original post

Zacks Investment Research

Energy ETFs Set To Soar As Oil Price Rises
 

Related Articles

Energy ETFs Set To Soar As Oil Price Rises

Add a Comment

Comment Guidelines

We encourage you to use comments to engage with other users, share your perspective and ask questions of authors and each other. However, in order to maintain the high level of discourse we’ve all come to value and expect, please keep the following criteria in mind:  

  •            Enrich the conversation, don’t trash it.

  •           Stay focused and on track. Only post material that’s relevant to the topic being discussed. 

  •           Be respectful. Even negative opinions can be framed positively and diplomatically. Avoid profanity, slander or personal attacks directed at an author or another user. Racism, sexism and other forms of discrimination will not be tolerated.

  • Use standard writing style. Include punctuation and upper and lower cases. Comments that are written in all caps and contain excessive use of symbols will be removed.
  • NOTE: Spam and/or promotional messages and comments containing links will be removed. Phone numbers, email addresses, links to personal or business websites, Skype/Telegram/WhatsApp etc. addresses (including links to groups) will also be removed; self-promotional material or business-related solicitations or PR (ie, contact me for signals/advice etc.), and/or any other comment that contains personal contact specifcs or advertising will be removed as well. In addition, any of the above-mentioned violations may result in suspension of your account.
  • Doxxing. We do not allow any sharing of private or personal contact or other information about any individual or organization. This will result in immediate suspension of the commentor and his or her account.
  • Don’t monopolize the conversation. We appreciate passion and conviction, but we also strongly believe in giving everyone a chance to air their point of view. Therefore, in addition to civil interaction, we expect commenters to offer their opinions succinctly and thoughtfully, but not so repeatedly that others are annoyed or offended. If we receive complaints about individuals who take over a thread or forum, we reserve the right to ban them from the site, without recourse.
  • Only English comments will be allowed.

Perpetrators of spam or abuse will be deleted from the site and prohibited from future registration at Investing.com’s discretion.

Write your thoughts here
 
Are you sure you want to delete this chart?
 
Post
Post also to:
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Thanks for your comment. Please note that all comments are pending until approved by our moderators. It may therefore take some time before it appears on our website.
 
Are you sure you want to delete this chart?
 
Post
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Add Chart to Comment
Confirm Block

Are you sure you want to block %USER_NAME%?

By doing so, you and %USER_NAME% will not be able to see any of each other's Investing.com's posts.

%USER_NAME% was successfully added to your Block List

Since you’ve just unblocked this person, you must wait 48 hours before renewing the block.

Report this comment

I feel that this comment is:

Comment flagged

Thank You!

Your report has been sent to our moderators for review
Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.
Continue with Google
or
Sign up with Email