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Zacks Market Edge Highlights: XLE, ONG, VDE, CVX, XOP, XOM and CVX
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For Immediate Release
Chicago, IL – February 24, 2022 – Zacks Market Edge is a podcast hosted weekly by Zacks Stock Strategist Tracey Ryniec. Every week, Tracey will be joined by guests to discuss the hottest investing topics in stocks, bonds and ETFs and how it impacts your life. To listen to the podcast, click here: https://www.zacks.com/stock/news/1872101/how-to-invest-in-energy-etfs)
How to Invest in Energy ETFs
Welcome to Episode #304 of the Zacks Market Edge Podcast.
(1:10) - Why Is The ETF Market So Quite On Energy?
(6:30) - Engine No. 1 Transform Climate ETF: NETZ
(11:00) - Understanding How An ETN Works: Is It A Safe Way To Invest In Energy?
(15:20) - What Is The Best Way To Gain Exposure To Energy Using ETFs?
Every week, host and Zacks stock strategist, Tracey Ryniec, will be joined by guests to discuss the hottest investing topics in stocks, bonds and ETFs and how it impacts your life.
This week, Neena Mishra, Zacks Director of ETF Research and the host of the podcast, ETF Spotlight, joins the podcast to discuss the hot energy sector.
How can you invest in energy stocks using ETFs?
In the past, the ETF industry has been fast to launch new products when a sector is hot, but the energy ETF industry is still dominated by the Energy Select Sector SPDR ETF (XLE - Free Report) , which has been around since 1998.
And the new launches have been limited to the Direxion Daily Oil Services Bull 2X ETF which launched in Jan 2022.
Is there still a lack of interest in oil stocks or are the concerns about ESG keeping them out?
Big Oil Dominates
The XLE and the other big energy ETF, Vanguard Energy ETF ((VDE - Free Report) ), both are top heavy with ExxonMobil (XOM - Free Report) and Chevron (CVX - Free Report) by far the two largest positions.
ExxonMobil and Chevron are 38.5% of Vanguard Energy ETF and are an even bigger portion of the XLE at 44%.
ExxonMobil shares have been hot in 2022, gaining 25%. Chevron has jumped 12.8%. Both are outperforming the S&P 500 which is down 9% during that time.
They both are also paying juicy dividends. ExxonMobil is paying a dividend yielding 4.6% and Chevron is yielding 4.3%.
A Basket of the Producers
If you want to avoid owning ExxonMobil and Chevron, there’s the SPDR S&P Oil & Gas E&P ETF (XOP - Free Report) .
It’s an equal weight ETF. The XOP is used by investors who only want to own the niche area of the producers, which excludes Big Oil and the Services.
What Else Do You Need to Know about the Energy ETFs?
Tune into this week’s podcast to find out.
Just Released: Zacks' 7 Best Stocks for Today
Experts extracted 7 stocks from the list of 220 Zacks Rank #1 Strong Buys that has beaten the market more than 2X over with a stunning average gain of +25.4% per year.
These 7 were selected because of their superior potential for immediate breakout.
Zacks Investment Research is under common control with affiliated entities (including a broker-dealer and an investment adviser), which may engage in transactions involving the foregoing securities for the clients of such affiliates.
Past performance is no guarantee of future results. Inherent in any investment is the potential for loss. This material is being provided for informational purposes only and nothing herein constitutes investment, legal, accounting or tax advice, or a recommendation to buy, sell or hold a security. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. It should not be assumed that any investments in securities, companies, sectors or markets identified and described were or will be profitable. All information is current as of the date of herein and is subject to change without notice. Any views or opinions expressed may not reflect those of the firm as a whole. Zacks Investment Research does not engage in investment banking, market making or asset management activities of any securities. These returns are from hypothetical portfolios consisting of stocks with Zacks Rank = 1 that were rebalanced monthly with zero transaction costs. These are not the returns of actual portfolios of stocks. The S&P 500 is an unmanaged index. Visit https://www.zacks.com/performance for information about the performance numbers displayed in this press release.
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Zacks Market Edge Highlights: XLE, ONG, VDE, CVX, XOP, XOM and CVX
For Immediate Release
Chicago, IL – February 24, 2022 – Zacks Market Edge is a podcast hosted weekly by Zacks Stock Strategist Tracey Ryniec. Every week, Tracey will be joined by guests to discuss the hottest investing topics in stocks, bonds and ETFs and how it impacts your life. To listen to the podcast, click here: https://www.zacks.com/stock/news/1872101/how-to-invest-in-energy-etfs)
How to Invest in Energy ETFs
Welcome to Episode #304 of the Zacks Market Edge Podcast.
Every week, host and Zacks stock strategist, Tracey Ryniec, will be joined by guests to discuss the hottest investing topics in stocks, bonds and ETFs and how it impacts your life.
This week, Neena Mishra, Zacks Director of ETF Research and the host of the podcast, ETF Spotlight, joins the podcast to discuss the hot energy sector.
How can you invest in energy stocks using ETFs?
In the past, the ETF industry has been fast to launch new products when a sector is hot, but the energy ETF industry is still dominated by the Energy Select Sector SPDR ETF (XLE - Free Report) , which has been around since 1998.
And the new launches have been limited to the Direxion Daily Oil Services Bull 2X ETF which launched in Jan 2022.
Is there still a lack of interest in oil stocks or are the concerns about ESG keeping them out?
Big Oil Dominates
The XLE and the other big energy ETF, Vanguard Energy ETF ((VDE - Free Report) ), both are top heavy with ExxonMobil (XOM - Free Report) and Chevron (CVX - Free Report) by far the two largest positions.
ExxonMobil and Chevron are 38.5% of Vanguard Energy ETF and are an even bigger portion of the XLE at 44%.
ExxonMobil shares have been hot in 2022, gaining 25%. Chevron has jumped 12.8%. Both are outperforming the S&P 500 which is down 9% during that time.
They both are also paying juicy dividends. ExxonMobil is paying a dividend yielding 4.6% and Chevron is yielding 4.3%.
A Basket of the Producers
If you want to avoid owning ExxonMobil and Chevron, there’s the SPDR S&P Oil & Gas E&P ETF (XOP - Free Report) .
It’s an equal weight ETF. The XOP is used by investors who only want to own the niche area of the producers, which excludes Big Oil and the Services.
What Else Do You Need to Know about the Energy ETFs?
Tune into this week’s podcast to find out.
Just Released: Zacks' 7 Best Stocks for Today
Experts extracted 7 stocks from the list of 220 Zacks Rank #1 Strong Buys that has beaten the market more than 2X over with a stunning average gain of +25.4% per year.
These 7 were selected because of their superior potential for immediate breakout.
See these time-sensitive tickers now >>
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Past performance is no guarantee of future results. Inherent in any investment is the potential for loss. This material is being provided for informational purposes only and nothing herein constitutes investment, legal, accounting or tax advice, or a recommendation to buy, sell or hold a security. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. It should not be assumed that any investments in securities, companies, sectors or markets identified and described were or will be profitable. All information is current as of the date of herein and is subject to change without notice. Any views or opinions expressed may not reflect those of the firm as a whole. Zacks Investment Research does not engage in investment banking, market making or asset management activities of any securities. These returns are from hypothetical portfolios consisting of stocks with Zacks Rank = 1 that were rebalanced monthly with zero transaction costs. These are not the returns of actual portfolios of stocks. The S&P 500 is an unmanaged index. Visit https://www.zacks.com/performance for information about the performance numbers displayed in this press release.