As has been previously noted, the PowerShares Dynamic Energy Exploration & Production Portfolio (NYSEArca: PXE) and the PowerShares DWA Energy Momentum Portfolio (NYSEArca: PXI) are options to consider in lieu of a dedicated refiners ETF. [Why These Energy ETFs Impress]
Five of PXI’s top 10 holdings are refiners. PXE features two refiners in its top holdings and six of the ETF’s 30 holdings are focused on the downstream business.
According to Barron’s, Oppenheimer upgraded HollyFrontier (NYSE: HFC), Marathon Petroleum (NYSE: MPC), Phillips 66 (NYSE: PSX), Tesoro (NYSE: TSO) and Valero (NYSE: VLO) to outperform. Marathon, Valero, Tesor and HollyFrontier combine for about 15% of PXE’s weight. Tesoro, Valero, Marathon and Phillips 66 combine for over 14% of PXI’s weight.
It should be noted that refiners exposure does not completely insolate these ETFs from energy sector declines. That much is confirmed by one-month losses of more than 6% for each fund.
PowerShares Dynamic Energy Exploration & Production Portfolio
