TLH in the energy sector

Also interested in VDE.

Have positions in RDS.A and CVX but kicking around selling those and just jumping into an VDE.

quote:

---

I have positions in XOM and BP that are down 40-50%. I have been slowly working my way out of single stock positions over t hbk e last few years and into ETFs. I like the energy sector generally given it's high dividend, and while I'm not worried about XOM, BP bothers me a bit. I'm thinking about selling all of my positions in both, taking the tax loss, and picking up VDE, Vanguard's energy sector etf. Thoughts?

---

If your stock is in a taxable account I would sell them both. You would need to evaluate VDE's holdings and determine how many shite bags it holds as you may be spreading your money on significantly worse companies than XOM and BP. RDS.B is much more similar to what you are selling. I bought VLO and EPD after they got pummeled but who knows. VLO has crushed XOM over the last month, it was up 15% on Friday but can decline big as well. I don't know that the O&G industry is every going to be what it was, certainly don't foresee $180 oil like in 2008, so most on here are probably thinking you should put your proceeds from the sale of the 2 companies into something non-oil related. At the end of the day, it is all about total return, not dividend payments. If you are dividend focused then VYM, SCHD, etc might be a better choice than VDE.