re: Official Oil/Energy ETF Thread

Posted by lsujro

north of the wall

Member since Jul 2007

3921 posts

Posted on 12/29/14 at 4:17 pm to TigerTatorTots

quote:
I'll be kicking myself I didn't pull the trigger on CVX at $100

bought a couple shares, feeling pretty good about it already

Posted by white perch

the bright, happy side of hell

Member since Apr 2012

7130 posts

Posted on 12/29/14 at 4:30 pm to lsujro

Bought RYE on 12/16 and it's already up 7%

Posted by CrackingCodes

Baton Rouge

Member since Jun 2010

689 posts

Posted on 1/9/15 at 10:37 am to TigerTatorTots

quote:
IXC - 3.3% yield with 93 total companies (global picture) XLE- 2.4% yield with 44 companies (domestic picture) IYE- 2.15% yield with 94 companies (domestic) VDE- 2.1% yield with 164 companies (domestic) If I go the route of an etf, I will likely jump into IXC. A 3.3% yield in an etf is crazy

I'm curious as to why would IXC not be a no brainer in that situation? If I plan to buy/hold for 30 years reinvesting dividends, IXC is already a better divvy number than XoM

Posted by Ole War Skule

North Shore

Member since Sep 2003

3409 posts

Posted on 1/9/15 at 10:44 am to CrackingCodes

Morningstar says: "IXC is similar enough to domestic-only ETFs to allow for comparison. The fund's global focus does not meaningfully improve the potential diversification benefits and actually increases the fund's already substantial large-cap bias. Oil is a fungible commodity, so global prices tend to be highly correlated. We view international diversification within the energy space to be less beneficial than in other sectors of the market. In fact, the domestic indexes have been 98% correlated with IXC over the past 10 years. Moreover, IXC has underperformed its domestic counterparts over the trailing 10-year period with similar levels of volatility. Given that IXC charges 3 to 4 times as much as the aforementioned alternatives, we would prefer sticking with one of the cheaper domestically focused funds under most scenarios."

This post was edited on 1/9/15 at 10:45 am

Posted by Civildawg

Member since May 2012

8561 posts

Posted on 1/9/15 at 12:33 pm to bayoubengals88

quote:
I lean VGENX, but that's a mutual fund.

There's nothing wrong with IXC, and having BP could actually help in the long run (because it's comically low)...and you're right, IXC wins by just glancing at the holdings IMO.
Also, I don't like that VDE is 1/5 XOM...can't go wrong with either though.

Aside: can someone go all in on Petrobras or Eni and let us know how it turns out?

How are you buying VGENX? Roth? or just a regular investing account? Will you hold it long or will you try to buy low and just sell it off after oil goes back up?

Should I go for the admiral shares in VSTMX this year on my Roth or buy VGENX?

Posted by Htown Tiger

Houston

Member since Sep 2005

2312 posts

Posted on 1/13/15 at 9:46 am to Civildawg

I've seen UWTI and DWTI mentioned a couple of times in this thread. Oil may not have hit bottom yet, and nobody knows when that will be, but why wouldnt an investor start putting a little cash into UWTI. I was thinking $x amount each week or so. Dollar cost averaging down while oil still slides, but pretty much knowing that oil will rebound - its only a question of when. Why wouldnt this be a pretty good investment option? If oil rebounds to say $60 in a year, UWTI should be back around ~$10/shr or so. You wont get those returns elsewhere.

Posted by okietiger

Chelsea F.C. Fan

Member since Oct 2005

40970 posts

Posted on 1/13/15 at 5:56 pm to Htown Tiger

Very new to the idea of ETF trading but I want to slap $1000 or more into some historically good oil/energy stocks that are currently down.

Where's the best place to start for this?

And can ETFs be traded on through the normal venues such as Etrade or RobinHood?