By the way, the weighting of underlying positions in this ETF is based on three factors:
1. Current production in barrels per day
2. Production expected in 2015
3. % of total production actually in Canadian oil sands
When I first heard of Claymore and the oil sands ETF, I thought they would have launched it by mid-late summer. I just spoke with the prez of Claymore Investments and he says this fund should be out by the end of October or first week of November. Oh that's some good timing.
But here’s the point, or rather question, in this blog entry:
Personally, I still like oil and have not dumped our energy ETF positions although for private client accounts they are somewhere at around 4-8% of the overall portfolio. However, although I like oil, I'm not so sure about natural gas.
To me, one is a global commodity play that has some geopolitics as well as obvious emerging market stimulus. The other is a regional weather play. I won’t get into El Nino or the supply/demand imbalance for natural gas.
Bottom line: Long oil and short natural gas may be in play for roughly six months. Futures is easiest to implement, but I wonder is there a way to play natural gas in the ETF or CEF space?
Aside: I often write more on SeekingAlpha ETF topics rather than energy, so my apologies if this oil/gas discussion is a replay.