BMO S&P/TSX Oil & Gas ETF (ZEO.TO)

If you sold oil stocks for the tax loss, you buy this ETF as a lateral move because you can’t buy the stocks back for 30 days. The volume is good. This one is equal weight, which he prefers at this stage of the advance.

BMO S&P/TSX Oil & Gas (ZEO-T) or iUnits S&P/TSX Capped Energy (XEG-T)? Has always been a fan of the equal weight side of things. If you want torque, this equal weight is probably going to do better than the large weight. They actually track pretty closely.

Basically an equal weight with all the big players. Nothing wrong with it at all. Probably a very good way to play the market. You could also do iUnits S&P/TSX Capped Energy (XEG-T).

(A Top Pick Oct 31/14. Down 21.64%.)This got tanked because of the oil prices and he is just sitting on it.

An ETF that would follow the oil stocks? This is the one that he would look at. If you want one that follows oil prices, you could look at U.S. Oil Fund (USO-N).

(Top Pick Aug 6/15, Up 0.64%) It had a pivot in early Sept at $10. This should be the start of an Eliot wave pattern.

Crude is not making new lows and so this one is oversold. It is equal weight.

Energy that has a little more pipeline. Equal weight. This is a good one. He has just bought some in the last 6 weeks.

Like iShares CLO-T and iUnits’ XEG-T, these are good assets that have been beaten up and he sees no reason why not to pick some up here, if your profile is fairly aggressive.

Dividend paying oil companies. If he decides to go into Canada and into oil this would be the one. XEG-T is too heavily weighted in SU-T and CNQ-T. This one is broader.

If you believe that oil is on sale, is there an ETF, US or Canadian, that has been beaten down worse than the others, and is this an opportunity? There are a couple that you could look at. iShares S&P/TSX Capped Energy (XEG-T) and BMO S&P/TSX Oil and Gas (ZEO-T). These are very similar, so either one. On the other hand, you could go into the US and pick up SPDR Energy (XLE-N), which has not been slaughtered quite as badly as the Canadian stuff.

You get a little more play on Trans Canada Pipe (TRP-T) and Enbridge (ENB-T), which he likes. This should work out very well because of Trans Canada Pipe leading the way on the Canada east contract. He thinks that is going to work out very well. This has lots of growth in it.

Yields 3.4% and on a risk adjusted basis, and you get a better quality dividend than the banks. It is one of the largest holdings he has. It is getting very attractive on a relative basis. It is a global dividend seeking fund. There will be increased volatility for the next year or so.

Actually iUnits S&P/TSX Capped Energy (XEG-T) has done much better, simply because Canadian Natural Resources (CNQ-T) and Suncor (SU-T), which are 30%-40% of the index, did so well over the last 6 months. As the energy business continues to do well, the gains will become more evenly distributed. Owning something like this in addition to, or instead of XEG would be the way to go if you like energy.

Charting it against iShares MSCI World Index Fund (XWD-T) for a comparison. Chart shows that the BMO product is a relative outperformance from February on.