ETF Chart of the Day: Natural Gas Fracking

December 27th at 10:49am by Paul Weisbruch, Street One Financial

Earlier this year the energy related activity known as “fracking” was brought to the ETF world via Market Vectors Unconventional Oil & Gas (NYSEArca: FRAK).

For those unfamiliar with the term, it refers to the induced hydraulic fracturing that energy exploration companies utilize in order to extract oil as well as natural gas (shale, etc.).

Debuting in February of this year, FRAK has only accumulated $15.8 million in assets under management thus far and averages about 4,700 shares on an average daily basis.

The fund tracks the Market Vectors Unconventional Oil & Gas Index and top holdings are currently laid out as the following: APC (7.99%), OXY (7.49%), EOG (6.91%), CNQ (6.68%), and DVN (5.39%).

There are currently forty five individual energy related holdings in this fund. Year to date, when compared to a broad based energy index ETF such as XLE (SPDR Energy Select), FRAK has lagged, losing 10.99% versus XLE falling 4.05% during the same time frame.

With the U.S. domestic broad equity market benchmarks up nicely this year (SPX +12.73%) it is clear that energy related equities have largely lagged from a performance standpoint, and it remains to be seen if they can begin to turn the corner in 2013.

Market Vectors Unconventional Oil & Gas

natural-gas-etf-fracking

For more information on Street One ETF research and ETF trade execution/liquidity services, contact Paul Weisbruch at pweisbruch@streetonefinancial.com.

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