Claymore launched a new energy exchange traded fund (ETF) Tuesday, the Claymore/SWM Canadian Energy Income Fund (ENY).
ENY has an unusual allocation approach: During bull markets, it comprises 70% oil sands stocks and 30% high-yielding trusts. However, during bear markets, it flips those allocations. Currently, ENY is set to bull market. This ETF not only focuses on energy but is also 100% Canadian. ENY comprises 45% mid-caps and with a mere 29 holdings, Roger Nusbaum of Random Roger bets that ENY is set to growth for now, but during bear markets it might switch to value.
Nusbaum raises a good question: If oil goes up, how will ENY perform?