ETF Trends
ETF Trends

ETF Spotlight on PowerShares Dynamic Oil & Gas Services (NYSEArca: PXJ), part of a weekly series.

Assets: $253 million

Objective: Tracks the Oil & Gas Services Intellidex Index, before fees and expenses.

Holdings: Some of the top holdings include names like Halliburton (NYSE: HAL), Schlumberger (NYSE: SLB) and Transocean (NYSE: RIG).

What You Should Know

  • There are 30 holdings in the ETF, ranging in weight from 5.6% (Baker Hughes (NYSE: BHI) to 2.1% (NYSE: RES).
  • Although most of the fund is allocated to the energy sector (97%), construction is a tiny 3%.
  • The breakdown of energy sector players ranges from oil-field service providers (46.7%), oil field machinery and equipment (20.1%) and oil and gas drilling (18.2%)
  • Most of the holdings are large-cap oil corporations, which account for 46.5% of the ETF, but you can also get a fair amount of exposure to mid- and small-caps, too: 31.1% and 17.1%, respectively

The Latest News

  • Meanwhile, the U.S. Department of Energy recently upped its global oil consumption outlook to a record 55 million barrels a day for 2011, with most of the demand coming from emerging markets like China and India. The Department of Energy adjusted upward its average oil prices projections to around $93 a barrel for 2011.
  • Although many investors may like getting exposure to oil via futures, others aren’t interested in that; if you’re among those who’d rather play oil through equities, this fund is a good option in an environment of high oil prices
  • According to a new survey of oil companies, spending for new wells, platforms and drilling rigs will increase 11% to around $490 billion next year on deep-water drilling, reports Stephen Beard for MarketPlace. Companies are banking on higher crude prices in the future to make up for the difference.

View the ETF Spotlight archives.

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.