Seeking Alpha

Investors shifting cash into energy ETFs on expectations of oil gains

  • Investors are pouring money into energy companies, putting 7x as much into energy sector ETFs as they did last quarter and betting that profits of energy producers rise along with crude oil and natural gas prices.
  • Energy collecting new money reflects optimism for a turnaround in companies like Exxon Mobil (XOM), XLE's biggest holding, but the bet may not pay off, as analysts generally foresee lower global oil prices in 2014 and gains in gas.
  • ETFs focusing on oil and gas companies have captured 20% of the $10B in net inflows into ETFs this year, after hauling in only 2.5% of fresh money last quarter and 7.7% in all of 2013.
  • ETFs: ERX, OIH, VDE, ERY, FCG, XOP, DIG, DUG, GASL, XES, IYE, IEO, IEZ, GASX, PXE, PXJ, PXI, PSCE, FENY, FXN, RYE, DDG
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