Funds And ETFs | Oil ETFs - Any Suggestions?

15th Oct '16 by Brilliant Leader

5 comments 10750 reads

I feel that I would like some exposure to oil in my portfolio but would prefer not to own individual shares as I'm terrible at researching and valuing oil companies. Therefore, I'd like to improve my exposure via specialist funds. My preference is closed ended investment trusts.

I already have a holding in City Natural Resources High Yield Trust (LON:CYN) which has a nice yield and I would like one or two others to add to the mix. Does anyone have any suggestions that I could investigate further?

Thanks in advance
Simon

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Brilliant Leader

Premium Member

I have been an active private investor since the mid 1990s and a Stockopedia subscriber since 2013. It is no coincidence that I have been a much better investor since subscribing. My sweet spot these days is to buy high quality companies when they are trading at a reasonable price and hold them until the investment thesis fails. more »

5 comments

gus 1065

15th Oct '16

If you're looking for an oil and gas based ETF, might be worth taking a look at XSER a Euro STOXX 600 O&G benchmarked product set up by Deutsche Bank. Here is the fund fact sheet link:-

http://www.iii.co.uk/research/LSE:XSER

I don't hold myself but am thinking of doing so.

Gus.

Tortoise investor

5th Jan '17

I've used ISHRS OIL & GAS EXPL & PROD USD ETF (LON:SPOG) before. It tracks large cap oil and gas companies, mostly North American ones. I sold out of it way too soon! I'm not inclined to get back in as I feel I've missed out on most of the gains but maybe that's wrong of me.

jonesj

5th Jan '17

I thought oil was looking cheap early last year, but just didn't like the "friction" evident in ETFs. So I dithered and did not invest.
Anyhow, by some coincidence, earlier today I found the following relevant article:

http://www.valuewalk.com/2016/12/commodity-etfs-po...

Cuthbert C

5th Jan '17

I'm puzzled that you mention CYN in the context of oil exposure.

According to its own website CYN has only 8.4% of its funds in oil & gas.

It looks to me to more focussed on mining and commodities.

Am I missing something?

picker

8th May '17

Cheap and liquid exposure via ETFs - following not to be considered as recommendation rather than ideas:

If you like to invest into oil companies in order to collect a nice dividend yield:
US market
XLE - exposure to US oil & gas (also shale) in the SP500, market-cap-weighted (focus rather on the giants of O&G industrie), dividend yield around 2.5% and very liquid - in USD, expense ratio: 0,14%
XOP - US O&G exploration and production, equal-weighted (also smaller companies considered), distribution yield 0,9% - in USD, expense ratio: 0,35%
IEZ - exposure to US O&G equipment & services (suppliers to oil fields and platforms, as Schlumberger, Halliburton, Baker Hughes, ...), market-cap-weighted, distribution yield around 1%, Expense Ratio: 0,44%

Europe:
EXH1 - european O&G companies, distribution yield around 5.6% p.a., expense ratio: 0,46% p.a.- in EUR

exposure to oil price:
USO - near-month Nymex futures contracts on WTI crude oil, rolling into next contract every month (risk of heavy roll costs), very liquid, rather for short-term moves in crude oil prices, expense ratio: 0,76%p.a. - in USD

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Oil ETFs - any suggestions?

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Brilliant Leader

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