John DeGoeyBMO Junior Oil Index ETFZJO.TOPAST TOP PICKApr 02, 2012

It is smaller oil and gas plays. Junior oils. 25% Canada and the rest is US. Compared to US large cap ETFs like IYE-N: As the price of oil is going down, both fell but small caps fell more than larger caps. He is okay with smaller caps. It is not investible yet.

Junior oil is subject to change by the moment. WTO oil has had a bit of a lift recently. There is a bit of consolidation going on in the chart for this ETF. If it breaks about $15, it would be a breakout and would be heading up. Wait for a breakout for new positions.

An ETF that holds oil. He owns a few individual oil stocks. This sector is okay. Oil itself has risen lot, but not the producers. Hold, but if the oil stocks don't produce soon, he will sell his oil.

High-return oil stock ETF’s?If think oil prices are going higher, this is the best way to get a high beta version. He is not bullish on oil, and expects it will be lower for longer. Commodity markets tend to be long trending and tend to move in long waves. Commodities, particularly oil, have become extremely oversupplied which kind of keeps a lid on the price of oil. He shies away from any oil investment right now.

(A top pick April 3/17. Down 7%.) This was a crummy trade. Thinks it might have a bit of an oversold bounce. He is talking 1-3 weeks and is going to get out.

It is a relatively short term play. This one has more leverage. It is an energy trade for the next two to three months. Oil looks constructive right now.

As a proxy for the energy market, he uses Suncor (SU-T), which is starting to break out. If we are going to have global growth, energy is going to be involved. You can do stock picking or buy the basket, and it is probably a little safer to buy the basket.

This is a junior ETF. It has done extremely well. It is still a good market for takeovers.

If you like lots of risks, this is probably a good thing to have in your portfolio. Smart money coming into oils is not going into the juniors, it is going into the big companies. He has no problem with this, but there will be some risks.

How to play the oil market right now. Lots of juniors could go out of business but they choose them carefully for this ETF and if they get taken out, you are okay anyway.