Which Oil ETFs?

[boroangel]

Anyone here buy Oil ETFs?

I am looking at a few such as IYE, IXC….specifically looking for those that have higher holdings in oil producers and not oil service companies.

Would be interested to hear and seek more opinions and which would be the better ETFs to go for?

 

[RobinTeoHood]

USL? 12mth oil futures

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[athletic91]

I lost a lot on uwti. Read up on contango.

Usl is good etf

 

[Shiny Things]

Anyone here buy Oil ETFs?

I am looking at a few such as IYE, IXC….specifically looking for those that have higher holdings in oil producers and not oil service companies.

Would be interested to hear and seek more opinions and which would be the better ETFs to go for?

Are you looking for ETFs that invest in oil as a commodity, or ETFs that invest in companies linked to the oil market? If the former, then there are basically no good answers; if the latter, then we can definitely find something for you.

The big energy companies tend to be dividend machines, so if you're investing in the US-listed entities, don't forget that 30% withholding tax. It's always worth seeing if there's an offshore way to get what you want.

From a quick squizz at the SPDR Europe and iShares UK ETF listings, I see two candidates:

• SXLE (London), which is an Irish (tax-efficient) wrapper around the XLE Select Sector Energy ETF, and has an appealingly low expense ratio (0.15%);
• SPOG (London), which is like SXLE with some international exposure. The top-10 stocks are mostly identical, and SPOG has a much higher expense ratio (0.55%).

 

[boroangel]

Hi ST,

I am looking at Energy ETF rather than Oil ETFs yes. Basically an ETF that is significantly made up of the major oil operators like Shell, BP, Exxon, Chevron, TOTAL, Statoil etc...

I am looking at both IXC and IPW (this one has more holdings in operators outside US). Do you have any other suggestions?

Btw for such ETFs are the expense ratios already included in the price, or are they deducted separately on an annual basis?

 

[Steyr69]

You are pretty optimistic abt oil?

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[boroangel]

Oil is always cyclical. I am in the industry and its been slightly more than 2 years now.

In the next 2 years there will be room for the prices to increase....or at least I hope so...

 

[Steyr69]

Oil is always cyclical. I am in the industry and its been slightly more than 2 years now.

In the next 2 years there will be room for the prices to increase....or at least I hope so...

I know the prices are definitely controlled by some cartels.
It is only a matter of time price will go up once they decide that oil is depleting.
But the wait seemed to be endless n we are hit by oil surplus news every now n then.
So.....at the moment....doesnt look to optimistic to me.

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[Shiny Things]

Hi ST,

I am looking at Energy ETF rather than Oil ETFs yes. Basically an ETF that is significantly made up of the major oil operators like Shell, BP, Exxon, Chevron, TOTAL, Statoil etc...

I am looking at both IXC and IPW (this one has more holdings in operators outside US). Do you have any other suggestions?

My first suggestion would be don't use either of those if you're not a US taxpayer. If you're a Singaporean resident, you'll be paying 30% dividend withholding on both of those.

Look at SXLE and SPOG that I pointed you to below. SPOG has the international exposure that you're looking for, but the expense ratio is a hefty 40bps higher.

Btw for such ETFs are the expense ratios already included in the price, or are they deducted separately on an annual basis?

None of the above. The expense ratio is deducted from the fund's NAV on a daily basis.