|Bid||0.00 x 41800|
|Ask||0.00 x 800|
|Day's Range||18.37 - 18.68|
|52 Week Range||13.13 - 29.87|
|PE Ratio (TTM)||N/A|
|Beta (3Y Monthly)||1.92|
|Expense Ratio (net)||0.35%|
US Crude Oil Is Heading for a New High(Continued from Prior Part)Oil rig countLast week, the oil rig count fell by eight to 825—just nine more rigs than the lowest level since April 13, 2018. The rig count tends to follow US crude oil prices with
Key Events in the Energy Sector Last Week(Continued from Prior Part)Energy subsector ETFsIn the week ending April 18, major energy subsector ETFs had the following performances:The VanEck Vectors Oil Services ETF (OIH) rose 0.3%.The VanEck Vectors
Halliburton Co. reported first-quarter net earnings rose rose from a year ago, but adjusted earnings that fell while topping expectations. The stock slipped 0.1% in premarket trade. Net income rose to $152 million, or 17 cents a share, from $46 million, or 5 cents a share, in the year-ago period. Excluding non-recurring items, such as impairment charges, adjusted EPS fell to 23 cents from 41 cents, but was above the FactSet consensus of 22 cents. Total revenue slipped to $5.737 billion from $5.740 billion, but topped the FactSet consensus of $5.53 billion, as completion and production and drilling and evaluation revenue both topped expectations. "As expected, the first quarter activity levels in North America were modestly higher compared to the first quarter of 2018, and we experienced pricing headwinds throughout the quarter," said Chief Executive Jeff Miller. "We believe the worst in the pricing deterioration is now behind us." Halliburton's stock has soared 17% year to date through Friday, while the VanEck Vectors Oil Services ETF has climbed 28% and the S&P 500 has gained 16%.
The rally in crude oil prices continue on tightening global supplies. But, uncertainty over the continuance of the momentum prevails. In such a scenario, we discuss some oil ETFs.
What Helped Your Energy Portfolio Overcome Oil's Weakness?(Continued from Prior Part)Correlation with US crude oil On April 10–17, major energy ETFs had the following correlations with US crude oil active futures: the VanEck Vectors Oil Services
Has Oil Lost Its Uptrend?(Continued from Prior Part)Oil rig count Last week, the oil rig count rose by two to 833—just 17 more rigs than the lowest level since April 13, 2018. The rig count tends to follow US crude oil prices with a three to
Why Energy ETFs Underperformed Oil's Gains?(Continued from Prior Part)Correlation with US crude oil On April 4–11, major energy ETFs had the following correlations with US crude oil active futures: the SPDR S&P Oil & Gas Exploration &
Shares of National Oilwell Varco Inc. tumbled 4.6% in morning trade Friday, after the oil services company lowered first-quarter revenue expectations, citing the negative impact of lower oil prices on oilfield equipment demand. The company said it expects first quarter revenue of $1.94 billion, which is up from $1.80 billion a year ago but below the FactSet consensus of $2.09 billion. "The severity of the decline in demand for oilfield equipment resulting from the sharp fall in oil prices during late 2018, further compounded by capital austerity that has taken hold in upstream oil and gas markets, was greater than we expected," said Chief Executive Clay Williams. The company said that while market conditions have improved since the beginning of the year, and are expected to continue to improve throughout the year, the outlook remains "opaque." As a result, the company plans initiatives during the year to cut costs. The stock has gained 8.9% year to date, while the VanEck Oil Services ETF has soared 29.7% and the S&P 500 has rallied 15.9%.
Schlumberger’s Q1 Earnings Are Expected to Fall 21%(Continued from Prior Part)Schlumberger in 2019Schlumberger (SLB) has risen ~26% in 2019 due to strength in crude oil prices. The stock has outperformed Baker Hughes (BHGE), Halliburton (HAL),
Goldman Sachs Raised the Oil Price Forecast for 2019(Continued from Prior Part)Oil rig countLast week, the oil rig count rose by 15 to 831 from the lowest level since April 13, 2018. The rig count tends to follow US crude oil prices with a three
Energy commodities, namely oil, are among this year's best-performing commodities. Predictably, that scenario is proving beneficial for energy ETFs.After tumbling 18.20% last year, the Energy Select Sector SPDR (NYSEARCA:XLE), the largest energy ETF, is up 17.70% this year, underscoring the point that energy is one of the best-performing sectors in the S&P 500 to this point in 2019.While betting against energy ETFs has been losing proposition so far in 2019, that does not mean the group is immune to potential downside. Energy is a cyclical sector and could be tested if investors continue favoring defensive groups. Additionally, energy ETFs could be pinched by slowing global economic growth, which would crimp oil demand.InvestorPlace - Stock Market News, Stock Advice & Trading Tips"With oil prices once again above our unchanged midcycle price of $55 per barrel, we see less value in oil-related stocks than we did at the beginning of the year," said Morningstar in a recent note. * Should You Buy Q1's 6 Best-Performing S&P 500 Stocks? Another variable to consider with energy ETFs is that sectors favorable seasonal period comes to an end in the middle of the second quarter. While that is not a guarantee of bad tidings with energy ETFs, it is something to consider because some of the following energy ETFs could be vulnerable to downside in the months ahead. SPDR S&P Oil & Gas Exploration & Production ETF (XOP)Source: Shutterstock Expense ratio: 0.35% per year, or $35 on a $10,000 investment. The SPDR S&P Oil & Gas Exploration & Production ETF (NYSEARCA:XOP) is rallying this year thanks in large part to this energy ETF's often intimate correlations to oil prices, but this is also what makes XOP vulnerable to significant downside if oil tumbles.XOP is up 17.50% this year. On its own, that sounds impressive, but when measured against the aforementioned XLE, XOP has not been the better bet on a risk-adjusted basis because exploration and production stocks are usually much more volatile than integrated oil names that dominate traditional energy ETFs like XLE.XOP could firm if oil inventories tighten and/or demand picks up. Given this energy ETF's domestic focus, the fund could benefit if U.S. shale producers scale back output during the second and third quarters, but there are no guarantees that scenario comes to pass. VanEck Vectors Oil Services ETF (OIH)Source: Shutterstock Expense ratio: 0.35% per year, or $35 on a $10,000 investment. Another high flier that is highly tied to oil prices, the VanEck Vectors Oil Services ETF (NYSEARCA:OIH) is up 26.51% this year. This energy ETF shares something common with integrated oil funds: OIH is dominated by a small number stocks, namely Schlumberger Ltd. (NYSE:SLB) and Halliburton Co. (NYSE:HAL).Those two oil services giants combine for over 34% of OIH's weight. Any material retrenchment in those names makes it difficult for OIH to deliver upside. Good thing some analysts are bullish on Schlumberger. * 3 Healthcare Stocks to Trade Now "Schlumberger stands out as high-quality and favorably valued," said Morningstar. "The market seems to be underrating prospects for the SPM business, a fully integrated services model that aspires to deliver a sea change in oil and gas development costs. SPM is already delivering returns on capital far ahead of the rest of the company, and therefore the business will lift Schlumberger's profitability up as it grows as a share of revenue in years to come." United States Oil Fund (USO)Source: Shutterstock Expense ratio: 0.84% per year. The United States Oil Fund (NYSEARCA:USO) is an energy ETF that is a likely epicenter of vulnerability if oil prices decline. This energy ETF is widely viewed as the bellwether oil fund, excluding equity-based products, and is also one of the most heavily traded commodities funds of any stripe. USO provides exposure to front month West Texas Intermediate (WTI) futures and there are some risks associated with that methodology."This method is particularly sensitive to short-term changes in spot prices, but can also result in heavy roll costs," according to ETF.com. "That makes USO a great vehicle for riding short-term moves in crude prices, but long-term holders may want to look at other options."Fortunately for bearish traders, USO has a robust options market and this energy ETF is highly liquid, meaning it is easy and cost-effective to sell short. Invesco S&P SmallCap Energy ETF (PSCE)Source: Shutterstock Expense ratio: 0.29% per year, or $29 on a $10,000 investment. The Invesco S&P SmallCap Energy ETF (NASDAQ:PSCE) is the small-cap answer to the aforementioned XLE and that alone explains this energy ETF's potential vulnerabilities if another oil bear market arrives.With PSCE up 26.23% this year, more than double the returns of the S&P SmallCap 600 Index, envisioning major declines for this energy ETF over the near term may be hard to do. However, if oil falters in earnest, that could trigger concerns about global economic growth and if investors become concerned about the U.S. economy, small caps would likely retreat, creating a double whammy of sorts PSCE. * 5 Cannabis Stocks Set to Skyrocket -- According to Wall Street's Top Analysts This energy ETF's 39 holdings, which have an average market value of $880 million, "are principally engaged in the business of producing, distributing or servicing energy related products, including oil and gas exploration and production, refining, oil services and pipelines," according to Invesco. Invesco DWA Energy Momentum ETF (PXI)Source: Shutterstock Expense ratio: 0.60%. Like many of the energy ETFs highlighted here, the Invesco DWA Energy Momentum ETF (NASDAQ:PXI) has been solid this year. And like many of the energy ETFs mentioned here, PXI faces two-fold scenarios that could make the fund vulnerable in the event oil prices retreat.First and foremost, PXI's composition, which includes a heavy tilt to mid- and small-cap stocks, makes the fund vulnerable to energy sector declines. Second, a momentum-based strategy could weaken more rapidly than cap-weighted energy ETFs if oil prices quickly erode.One sign to steer clear of PXI in oil bear market is already clear: this momentum energy ETF is up just 15% this year, trailing cap-weighted rivals like XLE by more than 200 basis points. Global X MSCI China Energy ETF (CHIE) Source: Shutterstock Expense ratio: 0.66%. The Global X MSCI China Energy ETF (NYSEARCA:CHIE) is another example of an energy ETF with impressive year-to-date gains (CHIE is up 16.55%) where speculating on near-term declines is a tricky endeavor, particularly with Chinese stocks ranking as among the world's top performers.CHIE's underlying index includes "all eligible securities as per MSCI's Global Investable Market Index Methodology, including China A, B and H shares, Red chips, P chips and foreign listings, among others," according to Global X. * 5 Automobile Stocks to Consider Now CHIE would be vulnerable to broader retrenchment in Chinese stocks, which would likely weigh on the global energy sector given that the world's second-largest economy is still a major energy importer. Plus, with CHIE lagging the equivalent U.S.-focused energy ETFs this year, the risk/reward trade off here currently is not favorable. First Trust Natural Gas ETF (FCG)Source: Shutterstock Expense ratio: 0.60%. The First Trust Natural Gas ETF (NYSEARCA:FCG) is up more than 19% this year, which is an impressive showing for this energy ETF. FCG is a mid-cap fund as highlighted by a median market value of $3.27 billion for the fund's 33 holdings.One of the primary issues with FCG is trusting that this fund will maintain its lead over traditional energy ETFs if oil and natural gas prices stay high and that FCG will not overshoot rival energy ETFs on the downside if energy commodities fall.These are relevant points because FCG has a history of lagging standard energy ETFs like XLE. From 2013 through 2018, FCG never outperformed XLE and during rough years for oil, such as 2014 and 2018, FCG's were much more severe than those incurred by regular energy ETFs.Todd Shriber does not own any of the aforementioned securities.Compare Brokers The post 7 Energy ETFs That Could Be Running Out of Fuel appeared first on InvestorPlace.
The fundamentals for the energy market are extremely strong with the ability to stir up every kind of ETFs & stocks in the sector.
The V anEck Vectors Oil Services ETF (OIH) , the largest oil services exchange traded fund, surged in the first quarter and with oil prices rallying to start the second quarter, the fund is now higher by 26.51% year-to-date. While OIH's surge to start 2019 may give some investors pause about jumping into the fund at current levels, some analysts believe oil services stocks can still notch upside from here. Earlier this year, OPEC issued a list of oil production cuts by its members and other major producers for the next six months starting January 1 to bolster confidence in the global crude oil markets as the cartel and its allies move to cut supply to combat the global glut, Reuters reports.
Will US Crude Oil Stay above $60?(Continued from Prior Part)Oil rig count Last week, the oil rig count fell by eight to 816—the lowest level since April 13, 2018. The rig count tends to follow US crude oil prices with a three to six-month lag. In
U.S. Manufacturing PMI increased to 55.3 in March from February???s 54.2 and beat expectations. These industry ETFs and stocks could be good picks in an improving backdrop.
With oil notching one of its best first-quarter performances on record, oil services stocks and the related exchange traded funds are off to impressive starts this year. For example, the VanEck Vectors Oil Services ETF (OIH) , the largest oil services ETF, jumped more than 23% in the first quarter. Earlier this year, OPEC issued a list of oil production cuts by its members and other major producers for the next six months starting January 1 to bolster confidence in the global crude oil markets as the cartel and its allies move to cut supply to combat the global glut, Reuters reports.
What Has Limited Your Energy Portfolio Gains in Q1?(Continued from Prior Part)Correlation with US crude oilSo far in the first quarter, major energy ETFs had the following correlations with US crude oil active futures:the VanEck Vectors Oil
SLB, HAL, BHGE, and NOV: Oilfield Services Stocks Have Risen(Continued from Prior Part)Debt-to-equity ratios Halliburton’s (HAL) debt-to-equity ratio is 1.1x—high compared to its peers. Baker Hughes (BHGE), Schlumberger (SLB), and National
Analyzing Key Dynamics of the Oil Market(Continued from Prior Part)Oil rig countLast week, the oil rig count fell by nine to 824—the lowest level since April 27. The rig count tends to follow US crude oil prices with a three to six-month lag.In
SLB, HAL, BHGE, and NOV: Oilfield Services Stocks Have RisenOilfield services stocks After falling significantly in 2018, the top oilfield services stocks have witnessed some gains in 2019. Schlumberger (SLB) and Baker Hughes (BHGE) have risen 18%
Oil's Impact on Energy ETFsCorrelation with US crude oilOn March 14–21, major energy ETFs had the following correlations with US crude oil May futures:the VanEck Vectors Oil Services ETF (OIH): 79.9%the SPDR S&P Oil & Gas Exploration
Energy exploration and production sector-related exchange traded funds led market gains Wednesday as U.S. crude prices pushed back above $60 per barrel, a four-month high, on tightening oil supplies in ...
Why Oil's Rise Might Be Unstoppable(Continued from Prior Part)Oil rig count Last week, the oil rig count fell by one to 833—the lowest level since May. The rig count tends to follow US crude oil prices with a three to six-month lag. In February
Energy Sector Highlights Last Week(Continued from Prior Part)Energy subsector ETFsIn the week ending March 15, major energy subsector ETFs had the following performances:The SPDR S&P Oil & Gas Exploration & Production ETF (XOP) rose