Larry Berman CFA, CMT, CTA Horizons Cdn Midstream Oil & Gas Index HOG-T WAIT Jul 18, 2016

Doesn’t think there is a lot of upside potential in the oil/gas area. We are awash in supply, and he doesn’t think demand is increasing to the level that is going to be required to see any significant upside moves on this.

He likes the services and mid stream sector. They have a lot of leverage to the upside, but good dividends also. Drillers are cheap right now. Pipelines are closer to their highs than their lows. This is a diversified way to play.

Challenge with buying US ETFs that participate in MLPs is that they're not favourable to a Canadian investor. Withholding tax of 15-30%. Be very, very careful on the MLPs. If you want gas exposure, think about XEG or ZEO. Most bang for the buck would be the HED, with small cap exposure. Small caps have more operating leverage if you're confident gas prices will rise. HOG is a bit more conservative.

XUT is market cap, ZUT is equal weighted. ZUT gives you more exposure to smaller players. HOG gives you more pipeline and energy services business, which acts similarly to utilities. It also hedges you on the downside. Could be a compliment to the other utility ETFs.