As OPEC Meets, New Energy ETFs Spy Opportunity in Oil's Decline - Bloomberg:
Cushing Asset Management has a lot riding on the meeting of OPEC in Vienna Thursday -- specifically, the success of its first exchange-traded funds.
On the heels of the worst month for crude since 2008, the Dallas-based investment firm, which manages about $3.3 billion in energy-related portfolios, is listing four sector ETFs connected to petroleum. The funds -- which focus on energy, utilities, transportation and the energy supply chain -- will look to deliver extra yield by investing some of their assets in companies set up as master limited partnerships.
It’s either terrible timing, or a stroke of genius. With oil having lost 22 percent in November and now trading at around $54 a barrel, OPEC could put a floor under the price by cutting its production. But with President Donald Trump pushing for lower prices, there’s a chance that exporters could let the price hold at this level, or slide even further.
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