Plenty of other downtrodden energy ETFs could bounce back in 2015 as investors buy into the “buy when there’s blood on the streets” thesis. That includes the Guggenheim S&P Equal Weight Energy ETF (NYSEArca: RYE).
Joseph Tatusko, chief investment officer at Westport Resources Management, told CNBC that RYE’s equal-weight status could help the ETF be an energy sector leader if the group bounces back.
RYE has at least one advantage by way of decent exposure to refiners. Lower oil prices reduce input costs for refiners, which can lead to higher margins.
RYE does, however, prove the old adage about there being no free lunch on Wall Street. The result of the ETF’s significantly reduced exposure to Chevron and Exxon is increased volatility. RYE’s standard deviation is 23.4%, according to Guggenheim data.
Guggenheim S&P Equal Weight Energy ETF
