The Guggenheim Canadian Energy Income Fund (NYSEArca: ENY), the lone U.S.-listed ETF devoted exclusively to Canadian energy stocks, changed its underlying index to the S&P/TSX Canadian High Income Energy Index at the start of this month.
ENY’s previous index was the Sustainable Canadian Energy Income Index. The ETF uses an interesting methodology to give investors exposure to exploration and production names as well as oil and gas storage and transportation stocks.
If the current quarter’s oil price is above the four quarter moving average oil price, then oil is deemed to be in a bull phase and the allocation is 70% oil sands and 30% high yielding Canadian energy stocks. If the oil price is below the moving average, it is deemed to be in a bear phase, with an allocation of 30% oil sands and 70% Canadian energy stocks. This approach give investor greater exposure to oil while prices are rising and gives higher yields when crude prices decline. [Canada, Commodities and Yield in One ETF]
Guggenheim said shifting ENY to the S&P/TSX Canadian High Income Energy Index will help bolster the ETF’s exposure to high-yielding Canadian energy names. ENY is the twentieth Guggenheim ETF to be linked to an S&P Dow Jones index, according to a statement issued by the ETF sponsor. The index commenced operation on July 25.
ENY debuted just over six years ago and currently has $56.2 million in assets under management. The fund’s trailing 12-month yield is almost 3.2%, roughly 70 basis points higher than what is found on the iShares MSCI Canada ETF (NYSEArca: EWC). ENY’s top holdings include Cresent Point Energy (OTC: CSCTF), Suncor Energy (NYSE: SU), TransCanada (NYSE: TRP) and Enbridge (NYSE: ENB).
Guggenheim Canadian Energy Income ETF
ETF Trends editorial team contributed to this post.
The opinions and forecasts expressed herein are solely those of Tom Lydon, and may not actually come to pass. Mr. Lydon serves as an independent trustee of certain mutual funds and ETFs that are managed by Guggenheim Investments; however, any opinions or forecasts expressed herein are solely those of Mr. Lydon and not those of Guggenheim Funds, Guggenheim Investments, Guggenheim Specialized Products, LLC or any of their affiliates. 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.