Home > A List Of The Top Ten Energy ETFs (OIH, XLE, XOP, KOL, IEZ, XOM, CVX, SLB, COP, APA)
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A List Of The Top Ten Energy ETFs (OIH, XLE, XOP, KOL, IEZ, XOM, CVX, SLB, COP, APA)

David Fry:  Our goal in this profile is to help investors wade through the many competing ETF offerings available. Using our long experience as an ETF publication, we can help select those ETFs that matter and may not be repetitive. The result is a more manageable list of issues from which to choose from.

There are currently nearly 30 ETFs oriented to the energy sector. The following analysis features a fair representation of ETFs available. We believe from these investors may choose an appropriate ETF to satisfy the best index-based offerings individuals and financial advisors may utilize.

We’re not ranking these ETFs favoring one over another so don’t let the listing order mislead you. Although we may use some of these in ETF Digest portfolios it’s not our intention to recommend one over another.


ETFs are based on indexes tied to well-known index providers including Russell, S&P, Barclays, MSCI, Dow Jones and so forth. Also included are some so-called “enhanced” indexes that attempt to achieve better performance through more active management of the index.

The energy sector has remains volatile and politically controversial given the recent higher spikes in prices in 2008 and 2011. The U.S. hasn’t had a coherent or effective energy policy since the Department of Energy was created by the Carter Administration. The bottom line: more bureaucrats than energy. Strong economic growth and supply scarcity add to the necessity to have exposure to the sector beyond alternative issues which we’ll feature separately.

We prefer not to use HOLDRS despite the popularity and attractiveness of an issue like ML Oil Services HOLDRS (NYSE:OIH) preferring instead to stick with ETFs.

Where competitive issues exist and/or repetitive issues become available at a superior fee cost saving we mention those as other choices. New issues are coming to market consistently and more often these issues need to become seasoned before they’re included in our listings.

For traders and investors wishing to hedge, leveraged and inverse issues are available to utilize more oriented to XLF and FCG than other issues from ProShares and Direxion.

SPDR Energy Select ETF (NYSE:XLE) is linked to the Energy Select Sector Index which includes oil, gas, natural gas and energy equipment and services. The fund is the oldest of its kind launched in December 1998. AUM (Assets under Management) exceeds $10 billion and average daily trading volume is around 20 million shares. The expense ratio is .20%. The annual dividend as of June 2011 is $1.02 making the dividend yield 1.34%. As of July 1, 2011 the fund has returned 11.44%.

Both Direxion and ProShares have leveraged long and inverse ETF products available to trade against energy issues like XLE.

Data as of June 2011

XLE Top Ten Holdings & Weightings

  1. ExxonMobil Corporation (NYSE:XOM):                17.25%
  2. Chevron Corporation (NYSE:CVX):                            13.28%
  3. Schlumberger, Ltd. (NYSE:SLB):                               7.52%
  4. ConocoPhillips (NYSE:COP):                                     4.78%
  5. Occidental Petroleum Corporation (NYSE:OXY):       4.72%
  6. Apache Corporation (NYSE:APA):                              3.39%
  7. Halliburton Company (NYSE:HAL):                            3.39%
  8. Anadarko Petroleum Corp. (NYSE:APC):                   2.84%
  9. Marathon Oil Corp (NYSE:MRO):                               2.79%
  10. Baker Hughes Inc. (NYSE:BHI):                                 2.63%

Vanguard Energy ETF (NYSE:VDE) is linked to the MSCI US Investable Market Energy 25/50 Index. The index consists of small to large companies within the overall energy sector from drillers, distributors, drilling rigs and equipment, production and marketing of oil and gas products. You’ll note the index is heavily weighted by XOM by 21%. The fund was launched in September 2004. The expense ratio is .25%. AUM is $2 billion while average daily trading volume is around 190K shares. As of July 1, 2011 the annual dividend was $1.25 making the current yield 1.12% with YTD performance of 12.10%.

Data as of June 2011

VDE Top Ten Holdings & Weightings

  1. ExxonMobil Corporation (XOM):                      21.12%
  2. Chevron Corporation (CVX):                            11.52%
  3. Schlumberger, Ltd. (SLB):                               6.75%
  4. ConocoPhillips (COP):                                     4.47%
  5. Occidental Petroleum Corporation (OXY):       4.39%
  6. Apache Corporation (APA):                              2.71%
  7. Halliburton Company (HAL):                            2.45%
  8. Anadarko Petroleum Corp. (APC):                   2.18%
  9. Devon Energy Corporation (DVN):                  2.10%
  10. Marathon Oil Corp (MRO):                               2.04%

iShares S&P Global Energy ETF (NYSE:IXC) follows the S&P Global Energy Sector Index. The fund was launched November 2001. The expense ratio is higher than others at .48%. AUM is nearly $1.5 billion and average daily trading volume is around 250K shares. As of June 2011 the annual dividend was $.70 with a dividend yield of 1.65%. The YTD return over the same time period was 7.96%.

Data as of June 2011

IXC Top Ten Holdings & Weightings

  1. ExxonMobil Corporation (XOM):                      13.97%
  2. Chevron Corporation (CVX):                            7.11%
  3. BP Plc (BP.):                                                    4.90%
  4. Total SA (FP):                                                  4.56%
  5. Royal Dutch Shell PLC (RDSA):                       4.34%
  6. Schlumberger, Ltd. (SLB):                               3.94%
  7. ConocoPhillips (COP):                                     3.54%
  8. Royal Dutch Shell PLC B (RDSB):                   3.28%
  9. Occidental Petroleum Corporation (OXY):       2.96%
  10. BG Group PLC (BG):                                      2.65%

iShares Dow Jones U.S. Energy ETF (NYSE:IYE) follows the Dow Jones U.S. Oil & Gas Index. The fund was launched in June 2001. The expense ratio is .48% like other iShares products. You should note a heavy concentration in weightings of XOM at nearly 24%. AUM is over $1 billion while average daily trading volume is over 260K shares. As of July 1, 2011 the annual dividend was $.52 making the yield 1.19%. The YTD return over the same period was 11.70%.

Data as of June 2011

IYE Top Ten Holdings & Weightings

  1. ExxonMobil Corporation (XOM):                      23.95%
  2. Chevron Corporation (CVX):                            12.09%
  3. Schlumberger, Ltd. (SLB):                               6.53%
  4. ConocoPhillips (COP):                                     5.67%
  5. Occidental Petroleum Corporation (OXY):       5.05%
  6. Apache Corporation (APA):                              2.86%
  7. Halliburton Company (HAL):                            2.75%
  8. Marathon Oil Corp (MRO):                              2.38%
  9. Anadarko Petroleum Corp. (APC):                   2.35%
  10. Devon Energy Corporation (DVN):                  2.17%

SPDR S&P Oil & Gas ETF (NYSE:XOP) follows the S&P Oil & Gas Exploration & Production Select Industry Index. The fund was launched in June 2006. Uniquely the index is equally weighted. The expense ratio is .35%. AUM equal around $6.8 billion and average daily trading volume is 5.3M shares. As of July 1, 2011 the annual dividend is $1.30 making the yield 2.17%. Over the same period the YTD return was 13.08%.

Data as of June 2011

XOP Top Ten Holdings & Weightings

  1. W&T Offshore, Inc. (WTI):                              1.87%
  2. Cabot Oil & Gas Corporation A (COG):            1.84%
  3. Petrohawk Energy Corporation (HK):               1.78%
  4. EQT Corp. (EQT):                                           1.68%
  5. Stone Energy Corporation (SGY):                   1.67%
  6. Bill Barrett Corporation (BBG):                         1.66%
  7. Rosetta Resources, Inc. (ROSE):                    1.65%
  8. Southwestern Energy Company (SWN):          1.64%
  9. Comstock Resources, Inc. (CRK):                   1.63%
  10. Rex Energy Corporation (REXX):                    1.61%

Market Vectors Coal ETF (NYSE:KOL) follows the Stowe Coal Index which provides exposure to companies that derive 50% or more of their revenues from the coal industry. The fund was launched in January 2008. The expense ratio is higher than average for the group at .62%. AUM equal $642M while average daily trading volume is over 530K shares. As of July 1, 2011 the annual dividend is $.19 making the yield roughly .40%. For the same period the YTD return was only 1.42%.

Data as of June 2011

KOL Top Ten Holdings & Weightings

  1. Joy Global, Inc. (JOYG):                                              8.50%
  2. Consol Energy, Inc. (CNX):                                         8.40%
  3. China Shenhua Energy Company Limited (01088):     8.20%
  4. Peabody Energy Corporation (BTU):                           7.94%
  5. Bucyrus International, Inc. A (BUCY):                          7.81%
  6. Walter Energy (WLT):                                                  5.07%
  7. Bumi Resources Tbk:                                                  5.06%
  8. Yanzhou Coal Mining Company Limited (01171):        4.84%
  9. Massey Energy Company (MEE):                                4.80%
  10. Alpha Natural Resources Inc (New) (ANR):                 4.77%

Data as of June 2011

FCG Top Ten Holdings & Weightings

  1. Stone Energy Corporation (SGY):                               3.99%
  2. Petrohawk Energy Corporation (HK):                           3.96%
  3. Cabot Oil & Gas Corporation A (COG):                        3.86%
  4. Southwestern Energy Company (SWN):                      3.59%
  5. SandRidge Energy, Inc. (SD):                                      3.55%
  6. Range Resources Corporation (RRC):                                    3.51%
  7. Ultra Petroleum Corporation (UPL):                             3.50%
  8. McMoRan Exploration Co. (MMR):                              3.43%
  9. QEP Resources, Inc. (QEP):                                       3.41%
  10. Royal Dutch Shell PLC ADR A (RDS.A):                      3.39%

iShares Dow Jones U.S. Oil Equipment & Services ETF (NYSE:IEZ) follows the Dow Jones U.S. Select Oil Equipment & Services Index. The fund was launched in May 2006. The expense ratio is .48%. AUM equals around $640M and average daily trading volume is over 300K shares. As of July 2011 the annual dividend was $.12 making the yield .19%. For the same period the YTD return is 14.40%.

Investors can also evaluate SPDR S&P Oil & Gas Equipment & Serves ETF (NYSE:XES) with a lower expense ratio of .35% but different constituents and weightings..

Data as of June 2011

IEZ Top Ten Holdings & Weightings

  1. Schlumberger, Ltd. (SLB):                               19.70%
  2. Halliburton Company (HAL):                            10.59%
  3. Baker Hughes Inc. (BHI):                                 7.87%
  4. National Oil Well Varco, Inc. (NOV):                7.47%
  5. Weatherford International Ltd. (WFT):              4.32%
  6. Cameron International Corporation (CAM):      3.47%
  7. FMC Technologies, Inc. (FTI):                          3.40%
  8. Noble Corporation (NE):                                  3.35%
  9. Nabors Industries, Ltd. (NBR):                         2.74%
  10. Pride International, Inc. (PDE):                          2.30%

PowerShares Dynamic Energy ETF (NYSE:PXI) follows the Dynamic Energy Sector Intellidex Index which is a so-called “enhanced” index strategy that evaluates constituents and modifies holdings according to quantitative valuations. The fund was launched in October 2006. The expense ratio is .60%. AUM equal $162M and average daily trading volume is around 53K shares. As of July 2011 the annual dividend was $.51 making the dividend yield 1.18%. For the same period YTD return was 14.57%. Investors might also consider a sister offering PowerShares Dynamic Oil & Gas Services ETF (NYSE:PXJ).

Data as of June 2011

PXI Top Ten Holdings & Weightings

  1. Marathon Oil Corp (MRO):                               2.61%
  2. Occidental Petroleum Corporation (OXY):        2.60%
  3. Spectra Energy Corp (SE):                                2.59%
  4. Halliburton Company (HAL):                            2.52%
  5. Chevron Corporation (CVX):                            2.52%
  6. Murphy Oil Corporation (MUR):                       2.48%
  7. El Paso Corporation (EP):                                 2.47%
  8. Sempra Energy (SRE):                                      2.42%
  9. ExxonMobil Corporation (XOM):                     2.42%
  10. Peabody Energy Corporation (BTU):                2.40%

First Trust Energy AlphaDEX ETF (NYSE:FXN) follows the StraQuant Energy Index which is another enhanced index attempting to outperform more static indexes through quantitative analysis and rebalancing of constituents. The fund was launched May 2007. The expense ratio is .70%. AUM are just under $150M and average daily trading volume is 102K shares. As of July 2011 the annual dividend is $.17 making the yield .70%. For the same time period the YTD return was 11.62%.

Data as of June 2011

FXN Top Ten Holdings & Weightings

  1. SunPower Corporation (SPWRA):                   3.80%
  2. Oil States International, Inc. (OIS):                   3.27%
  3. Seacor Holdings, Inc. (CKH):                           3.20%
  4. Baker Hughes Inc. (BHI):                                 3.16%
  5. Quicksilver Resources, Inc. (KWK):                 3.11%
  6. Chevron Corporation (CVX):                            3.05%
  7. Marathon Oil Corp (MRO):                               3.04%
  8. ConocoPhillips (COP):                                     2.96%
  9. SandRidge Energy, Inc. (SD):                          2.89%
  10. Cimarex Energy Company (XEC):                    2.87%

Energy overall remains a primary focus for investors. Alternative energy sources are also much in focus and will be featured separately in another profile.

New ETFs from highly regarded and substantial new providers are also being issued including from Charles Schwab’s ETFs and Scottrade’s Focus Shares (FEG, a new issue in this category) which both are issuing new ETFs with low expense ratios and commission free trading at their respective firms. These may also become popular as they become seasoned.

You may address any feedback to: feedback@etfdigest.com

(Source for holding data is from ETF Database and from various sponsors.)

Written By David Fry From ETF Digest 

David is founder and publisher of ETF Digest and best selling book author of Create Your Own ETF Hedge Fund, A DIY Strategy for Private Wealth Management published by Wiley Finance in 2008.  In July of 2009, Fry was named in the ETF Hall of Fame as one of the Top 25 people who revolutionized the ETF industry and guided ETF investing from its conception to widespread acceptance among all breeds of investors. Fry founded the ETF Digest in 2001 and was among the very first to see the need for an online publication that provided individual investors and financial professionals with trading tools, market information and actionable advice on ETF investing.  ETF Digest was recently ranked 9th in the Top 100 ETF websites from Alexa on exchange traded funds. Dave Fry has devoted over 35 years to the business of trading and portfolio management. He is registered as an arbitrator with the Financial Industry Regulatory Authority (FINRA) and the National Futures Association (NFA).


NYSE:IEZ, NYSE:KOL, NYSE:OIH, NYSE:XLE, NYSE:XOP


 

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