3 Energy ETFs With A Choppy Start To 2014 [Chevron Corporation, Vanguard Energy ETF, iShares Dow Jones US Oil & Gas Exp.(ETF)]

VDE has lost 2.45% year-to-date and has a Zacks ETF Rank of 3 or ‘Hold’ rating with a ‘Low’ risk outlook (read: Follow Warren Buffett in 2014 with These Sector ETFs).

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

This fund follows the S&P Oil & Gas Exploration & Production Select Industry Index, holding 81 stocks in its portfolio. It has amassed $617.7 million in its asset base and trades in heavy volume of more than 4.6 million shares per day. The ETF charges 35 bps in annual fees from investors.

The product provides equal weight exposure across a number of firms as none holds more than 1.6% of total assets. Further, it is widely diversified across various market caps – small caps (46%), large caps (30%) and mid caps (24%). However, about three-fourths of the portfolio goes to the exploration and production firms while refining and marketing, and integrated oil & gas take the remainder.

The ETF is down nearly 3.7% year-to-date and has a Zacks ETF Rank of 3 or ‘Hold’ rating with a ‘High’ risk outlook.

iShares U.S. Oil & Gas Exploration & Production ETF (NYSEARCA:IEO)

This ETF tracks the Dow Jones U.S. Select Oil Exploration & Production Index with AUM of $421.5 million. The fund trades in good volume of nearly 117,000 shares per day and charges 45 bps in annual fees and expenses.

In total, the product holds 75 securities, though it is guilty of concentration in its top 10 firms at 60% of assets. The top firm – ConocoPhillips (COP) – accounts for 13.25% share while other firms hold less than 7.3%. Here, exploration and production takes the top spot at 87.25% in terms of sectors, while integrated oil & gas takes the remainder.

The fund lost 2.4% so far this year and has a Zacks ETF Rank of 1 or ‘Strong Buy’ rating with a ‘Medium’ risk outlook.

This article is brought to you courtesy of Eric Dutram.

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