PXI tracks the DWA Energy Technical Leaders Index, which attempts to identify energy sector constituents displaying positive relative strength characteristics. With refiners among the energy sector’s relative strength leaders at the moment, PXI features robust refiner exposure. [Contrarian ETF Ideas for 2015]
In lieu of a dedicated refiners ETF, of which one does not exist, PXE, like PXI, is an adequate substitute. PXE’s refiners exposure is over 20%, including an almost 4.6% weight to Marathon Petroleum. The ETF also has an almost 3% weight to CVR Refining (NYSE: CVRR).
“CVR could deliver a discounted-cash-flow yield of 14% in 2015. While our Underperform rating was relative to a positive outlook for the sector, we now see limited drivers of relative underperformance,” said Credit Suisse.
The bank raised its rating on CR to neutral and its price target to $24 from $20. The stock currently trades below $22. [Sector ETF Ideas for May]
PowerShares Dynamic Energy Exploration & Production Portfolio
