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Larry Berman CFA, CMT, CTA Horizons Enhanced Income Energy ETF ENCC-T BUY ON WEAKNESS Mar 17, 2025

Add on weakness?

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.

Larry Berman CFA, CMT, CTA

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COMMENT

This depends on your view of energy. It has a very nice yield. If he wants an energy play and wants to be conservative, he would definitely buy this. In most cases, when he is dealing with a commodity like this, he prefers it to be unhedged with a covered call. On anything that is of a riskier commodity nature, he wants to have the full growth.

DON'T BUY

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.

BUY

Energy stocks are likely to hold firm in the coming months. Not interested in the long run because of green energy. Interesting in the short term. Good for trading, look more to solar and wind for long-term investment.

HOLD

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

HOLD

Dividend (~14%) hard to maintain. In short run, energy a good trade. Expecting strength in oil prices (~$70). Would not recommend for the long term, but good short term option.

TOP PICK

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%.

BUY

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.

WATCH

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.

WAIT

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

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