ETF Spotlight: PowerShares Dynamic Oil and Gas Services (PXJ)

| About: PowerShares Dynamic (PXJ)

ETF Spotlight on PowerShares Dynamic Oil & Gas Services (NYSEARCA:PXJ), part of a weekly series.

Assets: $253 million.

Objective: Tracks the Oil & Gas Services Intellidex Index, before fees and expenses.

Holdings: Some of the top holdings include names like Halliburton (NYSE:HAL), Schlumberger (NYSE:SLB) and Transocean (NYSE:RIG).

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. (NYSE: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.

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Oil ETFs, PXJ, Commodity ETFs, Energy ETFs

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