FRAK has one of the largest allocations to California-based Occidental of any ETF. However, FRAK’s Occidental position presents some risks. A vital element to the company’s future earnings growth is California’s Monterey Shale, which by some estimates is home to some of the largest oil reserves in the U.S. The issue is not only is oil proving hard to extract from the earth in Monterey, but California also recently passed the most stringent fracking laws in the U.S.
Market VectorsUnconventional Oil & Gas ETF
ETF Trends editorial team contributed to this article.