Energy ETFs Look Prospective, S&P Says

January 21, 2011

 

Looking Outside The Box

Apart from Glickman’s suggestion that investors ought to stick to the biggest names in the energy ETF space, there are plenty of other ways to play rising energy prices.

Among the choices are the First Trust Energy AlphaDEX ETF (NYSEArca: FXN), the Rydex S&P Equal Weight Energy (NYSEArca: RYE) and the 1 ½-year-old EG Shares Emerging Markets Energy ETF (NYSEArca: EEO), which carries Russia, China and Thailand as its biggest country allocations—and is denominated in local currencies.

Also, Invesco PowerShares markets a group of energy ETFs that slices and dices the sector. They include the PowerShares Dynamic Energy Portfolio (NYSEArca: PXI), the PowerShares Dynamic Energy Exploration & Production Portfolio (NYSEArca: PXE) and the PowerShares Dynamic Oil & Gas Services Portfolio (NYSEArca: PXJ).

An even-more-off-the-beaten-path option is to focus on the uranium industry via the newcomer Global X Uranium ETF (NYSEArca: URA), launched in November. The fund, which is heavily invested in Canada and Australia, holds names like Cameco, Paladin Energy, Uranium One and Energy Resources of Australia.

URA has collected $159.1 million in assets, making it the No. 2 nuclear-energy-related ETF after Van Eck Global’s Market Vectors Uranium + Nuclear Energy (NYSEArca: NLR), which had $263.5 million in assets as of Jan. 20, according to data compiled by IndexUniverse.com.

 

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