Energy

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High-yield dividend exchange traded funds offer attractive yields for the income-strapped investor, but the higher payouts come with risks, such as potentially unsustainable dividends from a beleaguered energy sector. “A lot of companies have adopted dividend policies that are unsustainable and have been rewarded by the financial markets that don’t sufficiently question the sustainability,” Harald […]

As oil prices rebound on improved market sentiment, master limited partnership exchange traded funds have broken above their long-term trend lines and offer attractive yields to boot. Crude oil prices just finished higher for the third consecutive week as market sentiment turned upbeat on strengthening U.S. gasoline consumption ahead of the summer driving season and […]

Oil and gas services-related exchange traded funds were leading the energy sector rally Tuesday, with Transocean (NYSE: RIG) shares surging, as a weak dollar and a Kuwait strike prop up crude oil prices. On Tuesday, the SPDR Oil & Gas Equipment & Services ETF (NYSEArca: XES) advanced 4.4%, Market Vectors Oil Service ETF (NYSEArca: OIH) […]

Without a Doha accord on an oil production freeze, the markets may suffer through an extended period of low oil prices, potentially causing a ripple effect that could extend to financial sector and U.S. dollar exchange traded funds. “While nothing explicitly has been said, it’s not a far reach to suggest that the production freeze […]

The Organization of Petroleum Exporting Countries and other major producers were unable to find common ground on an oil supply freeze over the weekend, initially sending crude oil prices plunging. However, oil-related exchange traded funds pared early loses Monday, with energy stocks among the best performers, after Kuwait strikes offset concerns over the failed oil […]

Despite plans for a production freeze among Organization of Petroleum Exporting Countries (OPEC) and other global producers, oil exchange traded fund investors shouldn’t get their hopes up for a continued surge in crude oil prices after the recent run up. Over the past three months, the United States Oil Fund (NYSEArca: USO), which tracks West […]

After the markets had time to digest a new pledge to secure debt, Chesapeake Energy Corp. (NYSE: CHK) shares surged, lifting oil exploration and production-related exchange traded funds. CHK shares soared 32.9% to $5.98 per share Tuesday and was testing its resistance at the 200-day simple moving average after the natural gas producer assured markets […]

Oil-related exchange traded funds advanced Tuesday as crude oil prices hit their highest level this year on reports that Saudi Arabia and Russia have agreed to a production freeze even with Iran ramping up supply. On Tuesday, Brent crude oil futures rose 3.7% to $44.4 per barrel and West Texas Intermediate crude oil futures gained […]

Crude oil-related exchange traded funds jumped Friday as speculators positioned for stronger global demand and a potential production freeze from top exporters. On Friday, the United States Oil Fund (NYSEArca: USO), which tracks West Texas Intermediate crude oil futures, gained 5.1% and the United States Brent Oil Fund (NYSEArca: BNO), which tracks Brent crude oil […]

As we head into the earnings season, U.S. companies may reveal a significant fall off in profits over the first quarter, extending a so-called earnings recession. Exchange traded fund traders, though, can hedge against the potential volatility with inverse or bearish products. S&P 500 Index company profits are projected to fall 9.8% in the first […]

The so-called earnings recession may have extended over the first quarter. Nevertheless, exchange traded fund investors may still find opportunities in some sectors that continue to grow. Capital IQ aggregate first quarter 2016 S&P 500 earnings-per-share are estimated to be $26.37, or a 7.5% decline year-over-year, compared to a 4.2% decrease for Q4 2015, Sam […]

Oil and energy related exchange traded funds slipped Wednesday as Saudi Arabia’s crown prince laid the fate of the Organization of Petroleum Exporting Countries’ output freeze on Iran’s shoulders. On Wednesday, the United States Oil Fund (NYSEArca: USO), which tracks West Texas Intermediate crude oil futures, fell 3.1% toward its 50-day support while the United […]

U.S. equities and stock exchange traded funds slipped on the last day of March, ending the month on a muted note after a wild quarter that pushed the markets into a correction before clawing back the losses on swift rebound. The Dow Jones Industrial Average gained 1.5% over the first quarter of 2016. Meanwhile, the […]

John Hancock has filled out the gaps in its smart-beta exchange traded fund suite with five new sector-specific ETFs backed by Dimensional Fund Advisors’ research-based factor investing. According to a press release, John Hancock’s new funds include: John Hancock Multifactor Consumer Staples ETF (NYSEArca: JHMS) John Hancock Multifactor Energy ETF (NYSEArca: JHME) John Hancock Multifactor […]

Speculative-grade debt or junk bond-related exchange traded funds have moved in lockstep with the energy market, falling and rising with the ebbs and flows of crude oil prices. High-yield bonds have been rallying since the February 11 low, the same day oil hit a nadir. Since the February low, the SPDR Barclays High Yield Bond […]

Investors can use leveraged and inverse exchange traded funds to hedge a long position against sudden turns or capture short-term trends in more volatile market conditions. On the recent webcast, Tactical Strategies to Combat Market Volatility, Sylvia Jablonski, Managing Director and Co-Head of the Capital Markets & Institutional Strategy Team at Direxion, points out that […]

As investors gear up for a volatile market in the year ahead, more aggressive exchange traded fund investors have utilized leveraged and inverse products to quickly adapt and capitalize on shifting market conditions. On the upcoming webcast, Tactical Strategies to Combat Market Volatility, Sylvia Jablonski, Managing Director and Co-Head of the Capital Markets & Institutional Strategy […]

GLD has gained 18.9% year-to-date, with Comex gold futures now trading around $1,265 per ounce, which has helped riskier stock ETFs shine QQQ, which tracks the Nasdaq-100, rose 7.3% over past month IWM gained 8.2% over past month SPY returned 7.2% over past month Among sector bets, energy has been the best performer in the six months […]

Federal Reserve keeps short-term interest rates unchanged at a range of between 0.25% and 0.5% Fed officials also suggested there will only be two more rate hikes this year Weakening dollar helps bolster commodity assets With the Federal Reserve keeping short-term interest rates unchanged, rate-sensitive exchange traded funds popped while some trades dependent on higher rates […]

ETFs that implement derivative financial tools have drawn greater scrutiny from regulators Leveraged and inverse ETFs are being used as trading products over the short-term  Investors are taking both sides of the trade, or long bullish and short bearish positions during market turns Investors have utilized exchange traded funds that track leveraged and inverse strategies […]

Natural gas futures and commodity-related ETFs have been rallying since the start of March After touching a 17-year low on March 3, natural gas futures have rallied on bets that prices have fallen too low Moreover, some argue that natural gas demand for electricity generation could be even higher this summer Natural gas futures and commodity-related exchange […]

Investors must keep in mind that most of their commodity-related ETFs do not track the spot price However, there are some exceptions, including precious metals-related exchange traded products Futures market may diverge from the spot price due to a number of factors, including storage costs and seasonal patterns With commodity exchange traded funds gaining traction as raw […]

Energy producers accounted for $1.9 trillion, or 11%, of the S&P 500’s $17.4 trillion market cap in June 2014 Since then crude oil futures have plunged 65%, dragging down the energy sector Consequently, the link between energy stocks and the broader equities market has diminished After the selloff in crude oil and producers for over a […]

Oil prices and commodity-related ETFs have been strengthening Energy prices continued to gain ground after the International Energy Agency  (IEA) said were past the bottom IEA warns of continued volatility ahead, especially with demand slowing down Oil prices and commodity-related exchange traded funds have been strengthening as traders bet that producers are cutting back after […]

Want to learn about diving into the low oil prices and markets affected by the energy fallout? ETF Trends publisher Tom Lydon (above right) discusses the issue with Jeremy Held – Director of Research & Investment Strategy at ALPS Portfolio Solutions. For instance, Held pointed out that the extended plunge in oil prices will likely […]

Commodities market is currently experiencing a supply side destruction U.S. oil rig count has been on the decline, and the market tends to anticipate that it will push up prices Consequently, with breakeven costs at $45 per barrel due to roll costs, many traders are now looking at MLPs where payouts are sustainable Master limited […]

Rebounding oil prices help Canadian equities extend their longest winning streak since August Canada’s equity market is one of two developed markets, along with New Zealand, that are back to positive this year Supporting the rally in Canadian stocks are raw-materials and energy producers Since the January 20 lows, the iShares MSCI Canada ETF (NYSEArca: […]

Oil equipment and services sector, along with related ETFs, lead rally after bad performance during energy rout Some hedge-fund managers are edging back into the energy sector, betting that prices have dropped too far ETF investors have also been diving into energy-related assets Oil equipment and services sector, along with related exchange traded funds, were […]

Energy Equity ETFs act moderately better in early 2016 than last year However, the energy sector is still unattractive in the eyes of some market observers The energy patch remains downright pricey compared to the broader market The Energy Select Sector SPDR (NYSEArca: XLE) and rival equity-based energy exchange traded funds are acting moderately better […]

As the energy sector is bludgeoned by low oil prices, banks and financial sector exchange traded funds could continue to underperform. Banking stocks are among the worst performing areas of the year. Year-to-date, the SPDR S&P Bank ETF (NYSEArca: KBE) fell 16.8% and PowerShares KBW Bank Portfolio (NYSEArca: KBWB) declined 17.3%. Meanwhile, the broader iShares […]