Playing The Energy Patch With This ETF (PXJ)

oil-rigsBaker Hughes (BHI) announced a “$5.5 billion cash plus stock acquisition of oilfield services company BJ Services (BJS), which the market is seeing as an act of weakness. Baker Hughes not only provides rotary rigs, which turn the drill bit in oil and gas excavations. It also provides statistics for how the industry’s doing, and those stats are just plain lousy,” Barron’s Reports.

“The latest data from Baker Hughes, and both management teams’ remarks to investors this morning, suggest that a sustained rebound for energy markets continues to be a ways off. This is why if you’re interested in playing the energy patch you’d probably be better off buying shares of the PowerShares Dynamic Oil & Gas Services (PXJ) ETF instead of Baker Hughes,” Barron’s Reports.

The investment (PXJ) seeks investment results that correspond generally to the price and yield (before the Fund’s fees and expenses) of an equity index called the Dynamic Oil Services Intellidex(SM) index. The fund normally invests at least 80% of total assets in common stocks of companies that assist in the production, processing and distribution of oil and gas. In pursuit of its objective, it may invest at least 90% of its total assets in common stocks that comprise the Oil Services Intellidex. It is nondiversified.

Here is a list of the top companies listed within the ETF below:

TOP 10 HOLDINGS ( 46.85% OF TOTAL ASSETS)  
 
Company Symbol % Assets
BAKER HUGHES INTL (BHI) 4.26
CAMERON INTL CP (CAM) 5.17
DIAMOND OFFSHORE DRL (DO) 4.3
HALLIBURTON CO (HAL) 4.49
HELIX ENERGY SOLUTNS (HLX) 6.3
KEY ENERGY SVCS INC (KEG) 4.21
NATL OILWELL VARCO (NOV) 4.61
NOBLE CORP (NEW) (NE) 4.46
SCHLUMBERGER LTD (SLB) 4.8
TRANSOCEAN LTD (RIG) 4.25

Chart for PowerShares Dynamic Oil & Gas Services (PXJ)

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