13.33 -0.20 (-1.48%)
Pre-Market: 7:44AM EDT
|Bid||0.00 x 800|
|Ask||0.00 x 43500|
|Day's Range||13.50 - 13.73|
|52 Week Range||9.23 - 16.24|
|PE Ratio (TTM)||N/A|
|Beta (3Y Monthly)||N/A|
|Expense Ratio (net)||N/A|
We expect the recent rise in oil prices to be a modest headwind to U.S. economic activity while supporting inflation. How sensitive is the U.S. economy to rising oil prices? A popular view is that growing U.S. energy output has largely immunized the ...
Oil is on fire this year, and while crude is one of 2019's best-performing commodities, some energy sector exchange traded funds (ETFs) are lagging the returns of oil ETFs that are futures-based strategies.Source: Shutterstock Here is an interesting dichotomy: the United States Oil Fund (NYSEARCA:USO), which tracks West Texas Intermediate futures, entered April 23 with a year-to-date gain of 41.50%. The SPDR S&P Oil & Gas Exploration & Production ETF (NYSEARCA:XOP), one of the oil ETF's most intimately correlated to crude prices, was up "just" 24.60% year-to-date as of April 22.Among equity-based oil ETFs, XOP is a popular and volatile option. To the latter point, if 2019 ended today, XOP's annualized volatility would be 31.60% compared to 23.80% for USO and just 17.70% for the Energy Select Sector SPDR (NYSEARCA:XLE), the largest equity-based oil ETF.InvestorPlace - Stock Market News, Stock Advice & Trading Tips * 7 Dividend Stocks That Could Double Over the Next Five Years The $2.29 billion XOP, which turns 13 years old in June, tracks the S&P Oil & Gas Exploration & Production Select Industry Index. This oil ETF "seeks to provide exposure the oil and gas exploration and production segment of the S&P TMI, which comprises the following sub-industries: Integrated Oil & Gas, Oil & Gas Exploration & Production, and Oil & Gas Refining & Marketing," according to State Street. Calm Seas for XOPGiven XOP's penchant for volatility, the ETF has recently been calm and steady. That is somewhat surprising when considering the spate of potential headline risk that oil ETFs have recently encountered. Earlier this week, the Trump Administration said the U.S. is nixing sanction waivers on Iranian oil next month, a move that sent crude prices soaring.Additionally, XOP has been under the earnings microscope in significant fashion since last week. While this ETF is an equal-weight fund where none of the 64 components exceed weights of 2.71%, large amounts of earnings reports in condensed time frames can affect equal-weight ETFs.This week, more than 24% of XOP's holdings report first-quarter results. Next week, that number swells to 51%, meaning this oil ETF could face significant earnings-related tests in the coming days."On Q1 earnings calls from some of the major energy companies, investors might want to keep their ears open for any observations of industrial demand, in part because the Fed and various data have pointed to softening capital expenditures recently by many companies," J.J. Kinahan reports in Forbes. "Crude producers might be among companies that see a negative impact if businesses project slower growth and cut back on spending."Another factor to consider with XOP and other oil ETFs is U.S. output. The U.S. pumping about 12 million barrels per day, record levels for oil production here. Even with that robust output, more rigs are coming online in the U.S. For much of this year, the factor bolstering oil prices has been declining production from some members of the Organization of Petroleum Exporting Countries (OPEC). Bottom LineEven with its impressive year-to-date performance, XOP still has some work to do. The ETF still labors below its 200-day moving average, which is almost 7% away. A move above that technical hurdle could spark a new wave of buying in.Currently, XOP resides more than 27% below its 52-week high. With the fund already up 24% this year, a return to that 52-week high is not impossible, but investors may do well to not expect the oil ETF to finish 2019 with a gain of around 50%.From 2013 through 2018, the best annual performance notched by XOP was in 2016 when the oil gained 38.30%.Todd Shriber does not own any of the aforementioned securities. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 7 Dividend Stocks That Could Double Over the Next Five Years * 6 S&P 500 Stocks Ready to Break Out * 5 Mining ETFs to Dig Into Compare Brokers The post The XOP Oil ETF Looks Great as Its Holdings Start Their Earnings Season appeared first on InvestorPlace.
Iran Threatens to Play “Trump” Card And Block Straits of Hormuz Iran is obviously upset about President Donald Trump moving to prevent Iran from selling its own oil and has threatened to block the Straits of Hormuz if the United States moves to block all countries from buying Iranian crude. The only way the US […]The post Market Morning: Iran Plays Trump…Card, Eurobank Earnings, $1B Apple Lawsuit appeared first on Market Exclusive.
WTI grade crude oil was advancing 0.73 percent to $66.28 at the time of publication Tuesday, marking the third straight session of gains. The most recent spurt in prices has come on the back of a standoff between the U.S. and Iran. The U.S. announced that all waivers to sanctions on Iranian oil imports will end next week.
The U.S. plans to not renew Iran oil import waivers previously granted for a few countries, sending oil prices shooting up. A few sector ETFs will gain and some will lose from the move.
The major U.S. benchmarks continue to trend steadily higher, rising within striking distance of record highs against a strengthening technical backdrop, writes Michael Ashbaugh.
Oil and Natural Gas: Are Traders Taking Opposite Positions?CorrelationsSo far in 2019, natural gas (UNG) has a correlation of 8.9% with US crude oil (USO) active futures. During this period, US crude oil rose 44.7%, while natural gas futures
What Might Impact US Oil Exports in the Coming Days?Brent-WTI spreadOn April 22, Brent crude oil June futures settled ~$8.5 higher than the WTI crude oil June futures. On April 15, the spread was at ~$7.6.Sign up for Bagels & Stox, our witty
The U.S. plans to not renew Iran oil import waivers previously granted for a few countries, sending oil prices shooting up. A few country ETFs will gain and some will lose from the move.
As a way to hedge against heightened volatility in the equities market, more investors are looking at alternative investment strategies like commodities and related ETFs to diversify a portfolio.
As a way to hedge against heightened volatility in the equities market, more investors are looking at alternative investment strategies like commodities and related ETFs to diversify a portfolio. “I don’t ...
Iranian Waivers To End, Oil Spikes The United States is calling an end to waivers for Iranian oil on May 2. No more extensions. All countries currently importing Iranian oil will have to stop or face US sanctions, which explains why other countries typically find the US to be annoying and bullyish. Oil futures rose […]The post Market Morning: Waivers End, Huawei Laughs to the Bank, More Boeing Trouble appeared first on Market Exclusive.
Choosing the right indicators can be a daunting task for novice traders. It’s a much easier process when they focus their effects into five categories.
Several fiscal policy reforms, easing monetary policy, stronger currency and relatively higher growth rate kept India ETFs super strong during Modi's tenure.
The energy sector has been one of the worst-performing market sectors in recent years, as a global oil supply has continued to surprise to the upside. The latest data from Bank of America suggests investors ...
Oil is already one of this year’s best-performing commodities, a fact affirmed by the United States Oil Fund (NYSEArca: USO), which tracks West Texas Intermediate crude oil futures, and the United States ...
To help investors keep up with the markets, we present our ETF Scorecard. The Scorecard takes a step back and looks at how various asset classes across the globe are performing. The weekly performance is from last Friday’s open to this week’s Thursday close.
Consider shares of Royal Dutch Shell, Exxon Mobil, Chevron, Halliburton and Baker Hughes, among others.
Total oil output from OPEC members fell in March by a combined 534,000 barrels per day (bpd) to just over 30 million barrels, CNBC reported Wednesday. What Happened OPEC's production slash amounts to ...
Investors piled billions of dollars into specialized commodities funds in the first quarter after going cold on the sector last year, according to new data. The sudden switch in sentiment comes amid increased chances of a U.S.-China trade deal, expectations of rising inflation and the perceived need by some investors to diversify away from stocks, analysts say. "Investment flows of $14.7 billion contributed to the rise in AUM [assets under management] amid positive sentiment towards risk assets," states a recent report from British Bank Barclays.
Why US Oil Exports Might Slow DownBrent-WTI spread On April 8, Brent crude oil June futures settled ~$6.7 higher than WTI crude oil May futures—the lowest level for the spread since August 21, 2018. On April 1, the spread was at ~$7.4. In the past
EU Ups Ante On Brexit, Pokes UK In Eye Chief Brexit negotiator for the European Union Michel Barnier has made a serious threat against the United Kingdom that is sure to anger the Brexiter Tories. Specifically, he said that the EU will insist on the dreaded “Backstop” for Ireland in order to prevent a hard […]The post Market Morning: Brexit Barnier Barn Burner, Cannabis States Law, Libya Shakes Oil Market appeared first on Market Exclusive.
While oil prices are surging, the energy sector is being left behind...sort of. The Energy Select Sector Index (IXETR), a widely followed gauge of large-cap U.S. energy stocks, is up 16.80 percent year-to-date. It also means that the large-cap energy index trailing the United States Oil Fund (NYSE: USO), which tracks front-month West Texas Intermediate futures, by a 2-to-1 margin.