BP’s stock has plummeted by half since the oil spill began in April. While there are several exchange traded funds (ETFs) that have exposure to the company, many more don’t and have managed to dodge any ill effects.
Since BP (NYSE: BP) is a company based in the United Kingdom, trading in America via American Depositary Receipts (ADRs), it’s not a component of many ETFs that follow the energy sector, including two of the largest: Energy Select Sector SPDR (NYSEArca: XLE) and Vanguard Energy (NYSEArca: VDE), says Ian Salisbury for The Wall Street Journal. [What the BP Oil Spill Means for ETF Investors.]
Transocean, the owner of the rig, complicates things a bit. Although it’s not technically a U.S. company – it’s based in Zug, Switzerland – it’s still classified as one by MSCI and is a major holding in VDE. Transocean is down 49% year-to-date. [Oil ETFs: Down Now, But What About the Future?]
But it’s not just BP and Transocean who are falling in this mess. There are other companies at play here, too, and they’re major holdings in some energy ETFs:
- Anadarko Petroleum (NYSE: APC), down 44% year-to-date
- Halliburton (cement company) (NYSE: HAL), down 25% year-to-date
- Cameron International (responsible for blowout preventer) (NYSE: CAM), down 18% year-to-date
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- SPDR Energy Select Sector (NYSEArca:XLE): Anadarko, 2.3%; Halliburton, 2.3%; Cameron, 1.2%
- iShares S&P Global Energy Sector Index Fund (NYSEArca: IXC): Halliburton, 1%; Anadarko, 0.8%; Cameron, 0.4%
- Vanguard Energy ETF (NYSEArca: VDE): Anadarko, 2.7%; Halliburton, 2%
Tisha Guerrero contributed to this article.
The opinions and forecasts expressed herein are solely those of Tom Lydon, and may not actually come to pass. Information on this site should not be used or construed as an offer to sell, a solicitation of an offer to buy, or a recommendation for any product.