Exchange traded funds (ETFs) that invest in energy stocks could see action Tuesday after House of Representatives Speaker John Boehner said Congress should mull scaling back subsidies to oil companies as gas prices soar.
“It’s certainly something we should be looking at,” Boehner said during an interview, according to Reuters. “Everybody wants to go after the oil companies and frankly, they’ve got some part of this to blame,” he said, adding he also wanted to “see all the facts” before taking any action.
Gas prices have jumped this year amid unrest in the Middle East and other oil-producing regions. U.S. Gasoline Fund (NYSEArca: UGA) is up nearly 30% so far in 2011. [Gasoline ETF Rises as Prices Near $4 a Gallon.]
The largest ETFs that invest in energy and oil companies by assets include Energy Select Sector SPDR Fund (NYSEArca: XLE), Vanguard Energy ETF (NYSEArca: VDE), Oil Services HOLDRS (AMEX: OIH) and SPDR S&P Oil & Gas Exploration & Production ETF (NYSEArca: XOP).
Energy ETFs are the best-performing U.S. sector so far this year, according to Russell Indexes.
The top holdings in Energy Select Sector SPDR Fund are Exxon Mobil (NYSE: XOM) and Chevron (NYSE: CVX).
Several energy giants report quarterly earnings this week, including Exxon, Chevron and ConocoPhillips (NYSE: COP).
The opinions and forecasts expressed herein are solely those of John Spence, 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.