ETF Spotlight on PowerShares Dynamic Oil & Gas Services (PXJ), part of a weekly series.
Assets: $253 million.
Objective: Tracks the Oil & Gas Services Intellidex Index, before fees and expenses.
What You Should Know
- There are 30 holdings in the ETF, ranging in weight from 5.6% (Baker Hughes (BHI)) to 2.1% (RPC Inc. (RES)).
- Although most of the fund is allocated to the energy sector (97%), construction is a tiny 3%.
- The breakdown of energy sector players includes oil-field service providers (46.7%), oil field machinery and equipment (20.1%) and oil and gas drilling (18.2%)
- Most of the holdings are large-cap oil corporations, which account for 46.5% of the ETF, but you can also get a fair amount of exposure to mid- and small-caps, too: 31.1% and 17.1%, respectively
The Latest News
- The U.S. Department of Energy recently upped its global oil consumption outlook to a record 55 million barrels a day for 2011, with most of the demand coming from emerging markets like China and India. The Department of Energy adjusted upward its average oil prices projections to around $93 a barrel for 2011.
- Although many investors may like getting exposure to oil via futures, others aren’t interested in that; if you’re among those who’d rather play oil through equities, this fund is a good option in an environment of high oil prices
- According to a new survey of oil companies, spending for new wells, platforms and drilling rigs will increase 11% to around $490 billion next year on deep-water drilling, reports Stephen Beard for MarketPlace. Companies are banking on higher crude prices in the future to make up for the difference.
[Click to enlarge]