Larry Berman CFA, CMT, CTA Horizons Enhanced Income Energy ETF ENCC-T HOLD Jan 29, 2024

Buy, hold or sell? Liked it till recently. Have difficulty seeing any upside with the oil price in Canada. Normally he would say buy it, now he would say look at the US.

Bullish on energy.
Good long term hold.
High dividend yield that can be risky (13%).

An equal-weight index in energy, not market cap. Half of this is a covered call strategy, so you keep half the upside. MER of 0.84%.

Is more diversified that XEG; ENCC spreads the energy bet more. There's talk of Trump wanting to reduce oil prices, but natural gas prices are probably much more bullish. So Canadian energy companies here offer more nat gas than oil exposure vs. the US.

Not closely familiar with this one. But in general, the energy sector is one that could start to move positively simply because he thinks there's going to be a change in Canadian government. It might be the place to be.

He doesn't use leverage so check for it. It has a covered call approach. Wait for a decision on tariffs.

He likes the idea of adding on weakness, that's what he's been doing. He uses a lot of optionality in his portfolios. So he's writing puts in the energy sector to acquire companies; if they don't go to those prices, he just earns the income. He's perfectly happy with a strategy like that at this point.

If we get a harder economic landing at some point, then oil has some more downside. The US outlook for crude oil demand was just downgraded. We're in a trading range, and he's accumulating into weakness.

Oil has been rangebound from $60-83 in recent years on geopolitical tensions. The volatility plays into the covered call strategy here.