expects global oil demand to increase
by another 1. 1 million barrels per day
this year. Nevertheless, crude oil supply will outpace consumption growth
and increase by 1. 5 million barrels per
day in 2014.
Top holdings within IPW include
BP, Royal Dutch Shell and Suncor Energy. IPW gained around 11% over the
past year and charges annual expenses
First Trust ISE Revere Natural Gas
Gas inventories climbed 1.887 trillion
cubic feet from an 11-year low in March
to 2.709 trillion on Aug. 29, 2014 the
fastest pace for the period in EIA data
going back to 1994.
U.S. gas production is rising toward
a fourth straight annual record as new
wells come online at shale deposits.
And the EIA estimates that by 2035
natural gas will surpass coal as the
nation’s largest source of energy for
FCG follows a basket of 30 U.S. natural gas stocks that are equally weighted.
The fund has around $500 million in
assets and charges annual expenses of
Market Vectors Coal ETF (KOL)
Globally, coal remains a dominant source
of power generation. Despite increas-
ing competition from other resources,
coal is plentiful and inexpensive.
In the U.S., coal still plays an important role for generating power. But
the increased usage of alternatives like
natural gas and cleaner renewable energy sources is rapidly chipping away
at this dominance.
How poorly have coal stocks performed? From 2011 to 2013, KOL recorded three consecutive yearly losses
and over the past five years KOL has
erased 5.81% in value. The $190 million fund has a 2.60% SEC yield and
its annual expenses are 0.59%.
“Coal has a long list of drawbacks.
But its advantage lies in its price, which
is far cheaper than other sources of fuel,”
said Zacks Equity Research.
Market Vectors Uranium Nuclear
Energy ETF (NLR)
In 2012, coal-fired and nuclear power
plants together provided 56% of the
electricity generated in the U.S. The
role of these technologies in the U.S.
generation mix has been changing since
2009, as both low natural gas prices and
slower growth of electricity demand
have altered their competitiveness
relative to other fuels.
Although nuclear power plants are
expensive to build and maintain, they
have relatively low variable operating
costs, which ensures that they are dis-
patched when available.
Perhaps the biggest worries facing
the nuclear industry are environmental
issues, safety and new regulatory bur-
dens in light of the Fukushima nuclear
disaster. In 2013, Dominion Energy
estimated post-Fukushima changes
would cost $180 to $240 million for
its fleet of six nuclear power plants.
NLR owns stocks in the global
nuclear sector from Australia, Japan,
France, Canada, Poland and the U.S.
The fund has $76 million in assets and
charges 0.60% annually. In 2013, NLR
The overall trend in energy is toward
relatively clean and renewable sources
like natural gas, solar and wind. Likewise, the U.S. is making a major push
toward increasing domestic production
of natural gas and oil to reduce dependence on trading partners.
Sector energy ETPs allow you to
focus on major investment themes
without having to select individual
companies. Besides full transparency,
it’s a more diversified approach and
an outstanding way to capitalize on
the dynamic shift happening in the
-5% Alerian MLP
Energy Select Sector
Market Vectors Uranium
Nuclear Energy ETF (NLR)
SPDR S&P Intl
First Trust ISE Revere
Natural Gas (FCG)
Market Vectors Coal
Energy-Related ETF Performance
2014 YTD Performance (through 9/5/14)