Canadian Energy ETFs
OAKVILLE, Jan. 14, 2021 / PRNewswire / — Harvest Portfolio Group, Inc. (“Harvest”) is pleased to announce the completion of the first offering of Class A units of the Harvest Clean Energy ETF based on a prospectus filed with the Securities and Exchange Commission of Canada on January 7, 2021.
The Harvest Clean Energy ETF is a TSX-listed Clean Energy ETF that aims to provide Canadian investors with access to the rapidly developing clean energy sector. The fund invests in a portfolio of 40 of the largest clean energy issuers from a selected investable clean energy universe. The funds include companies focused on solar energy and wind turbines.
The three biggest holdings are Enphase Energy, Inc. (ENPH), a developer and manufacturer of microinverter systems for the photovoltaic industry; Solaredge Technologies, Inc. (SEDG), an Israel-based supplier of solar energy optimization and PhotOVoltaic monitoring solutions and First Solar Inc. FSLR, a manufacturer of solar modules and related services.
Toronto-based Horizon ETFs unveiled two new exchange-traded funds that offer investors access to two of the biggest sectors of the Canadian stock market: financial services and energy. With an annual management charge of $0.35, the two ETFs are the cheapest products in their peer group and are only 40% more expensive than the next lowest ETF that tracks the same index. Investors can also own the broad Canadian equity ETFs held by Suncor Energy Inc., Canadian Natural Resources Ltd. and Cenovus Energy Inc., Tersigni said.
BMO Equal-Weight Oil & Gas Index ETF (ZEO) – ZEO holds 11 major Canadian oil and gas holdings. Investors seeking balanced exposure to Canadian energy players should look to ZEO, which uses a balanced allocation instead of XEG’s market capitalization weighting. In addition, ZEO takes a balanced approach, which means that all companies account for an equal share of the total portfolio.
A different market-weighted approach is adopted than XEG, where larger companies account for a larger portfolio share. As such, the Equal-Weight Oil & Gas Index ETF BMO is a viable alternative for investors. The Oil ETF seeks to replicate Canada’s big oil and gas companies “equilibrium index.
The ETF invests in shares of Canadian issuers in the Canadian energy sector. The BlackRock iShares S & P / TSX Cap Energy Index ETF has made it my list of best Canadian oil ETFs because it invests in energy stocks. The ETF aims to replicate the performance of the S & P / TSX Cap Energy Index as far as possible without net costs.
ETFs ( Energy Exchange Traded Funds) invest in stocks of natural gas, oil and alternative energy companies. Securities in an energy ETF portfolio can include large companies like Enbridge Inc. (ENB) or smaller, growing companies in the sector such as SunPower Corp. (SPWR). ETFs cover a wide range of companies, regions and risk profiles and offer investors something for everyone.
Energy ETFs are a smart option for investors seeking significant diversification and access to various key players in the energy sector at a low cost. With this in mind, the most popular energy ETFs are listed below: Decreased Asset Management (AUM) refers to the total value of investments that a financial institution manages on behalf of its clients and not the financial institution itself.
Clean energy, coal, renewable energy, oil, natural gas and nuclear energy. The energy sector is one of the most important and largest sectors in both national and global markets; it makes sense for investors who focus on growing their investments and maintaining a diversified portfolio to want a piece of the pie. If you want a diversified portfolio, energy company stocks should play a role in your investment strategy.
Investing in Canadian ETFs means missing out on some of the world’s biggest energy producers. While US-listed ETFs offer diversified exposure to the US industry that includes many of the nation’s largest producers, their equal weighting ensures investors do not focus on the biggest players, says Todd Rosenbluth, head of US-listed ETF mutual fund research at CFRA in New York City. The risk is that such a strategy will give smaller companies more exposure, which can increase volatility.
According to Morningstar, BMO ETF has 46% of its portfolio in utility stocks, the next highest weighting being 31% in technology and 20% in industry. Global Energy Investments is filled with market-cap-weighted passive funds that track oil and gas companies in developed and emerging markets.
The Horizons Crude Oil ETF is an ETF in the energy sector that invests in the Solactive Light Sweet Crude Oil Winter MD rolling futures index through a forward arrangement with Canadian financial institutions. The ETF aims to provide its investors with safe exposure to commodity prices during the winter months of the contract year, which are the most liquid of the year. It also tries to explain to its investors the performance of the index when they bet on oil.
Investors can invest in oil for as little as $1,000 with a trading account with an online broker. If you are unsure or want to put extra focus on your portfolio and consider whether you should choose an oil share to trade, an ETF through an online broker is a great tool to keep you at peace with all the investment steps you are taking. So please don’t put a pension fund into the future of oil and gas; live now and bet $5 on an energy portfolio to bring it to life.