- A broad class of ETFs that includes funds focused on oil and gas exploration; the generation, distribution and retail sale of gas and other refined products; electric utilities and alternative energy production. Energy ETFs may invest in only United States-based companies, globally based energy companies, or a blend of the two.
The offerings within the energy ETF class include replications of the energy-sector stocks found in the S&P 500, U.S. energy producers, global energy producers and funds of a particular sub-sector designation, such as nuclear, coal, gas, etc. The weighting of stocks within these ETFs can be market-cap based, equally-weighted or fundamentally weighted, based on financial metrics like net earnings and dividend yield.
Energy ETFs represent a sector that is widely held by both conservative and risky investors, because energy represents a large portion of the broad economy. This is evidenced by energy’s high percentage allocation within broad market averages like the S&P 500.
Energy ETFs have the advantage of intraday pricing and trading, which can make them more attractive than similarly invested mutual funds. Investors should read the fact sheets and prospectuses carefully to be sure of what guidelines an ETF has with regards to similar focus areas, such as mining and commodities.
Investment dictionary. Academic. 2012.
Look at other dictionaries:
Alternative Energy ETF — An exchange traded fund that invests in companies engaged in industries serving alternative energy production and research. Some companies found within alternative energy ETFs may only receive a portion of their revenues from alternative energy… … Investment dictionary
ETF Securities — Type Private, Employee owned Industry Investment management Number of locations Jersey, London, United Kingdom, Tokyo, Japan, New York, USA Products Exchange traded funds, Commodities, FX … Wikipedia
ETF — may refer to the following:*The Emergency Task Force, a special tactical unit of the Toronto Police that is similar in many ways to the United States SWAT teams. *Exchange traded fund, an investment vehicle that trades on a stock exchange at… … Wikipedia
Oil Services Industry ETF — A sector exchange traded fund (ETF) that invests in companies engaged in providing services such as drilling and seismic testing to the oil exploration production (E P) industry. Oil service companies generally do not produce oil and gas… … Investment dictionary
Stock ETF — A security that tracks a particular set of equities, similar to an index. A stock ETF is traded just as a normal share of stock is traded on an exchange, but unlike a mutual fund it will have its price adjusted throughout the day rather than at… … Investment dictionary
Inverse ETF — An exchange traded fund (ETF) that is constructed by using various derivatives for the purpose of profiting from a decline in the value of an underlying benchmark. Investing in these ETFs is similar to holding various short positions, or using a… … Investment dictionary
Alternative energy indexes — The principal the indices, apart from regional or global focus is that some focus on clean energy technologies while others focus on the broader alternative energy transition. The other factors which differentiate indices are whether they:*focus… … Wikipedia
China ETF — Exchange traded funds that invest in and track the equity stakes of China based companies, either through investment on Chinese stock exchanges or via foreign listed shares such as American depositary receipts (ADRs). Because of regulations… … Investment dictionary
Oil ETF — A category of exchange traded funds that invest in companies engaged in oil and gas discovery, production, distribution and retail. Some oil ETFs may be set up as commodity pools – with limited partnership interests instead of shares… … Investment dictionary
Companies listed on the Toronto Stock Exchange (H) — Toronto Stock Exchange listed stocks: 0 9 A B C D E F G H I J K L M N O P Q R S T U V W … Wikipedia