Buy, Sell or Hold: iUnits S&P/TSX Capped Energy ETF (XEG-T)

TSE:XEG

14.34

0.46 (3.29%) 1d

Showing 1 to 15 of 177 entries

TOP PICK

This is for exposure to the Canadian energy sector which is in a better spot than the U.S. sector. Energy has done really well and has more to go, being in a strong seasonal period. April is a very good month for energy.

E.T.F.'s

SELL ON STRENGTH

The way to trade energy is XEG which is market cap weighted. ZEO is equal weights. He has been selling into strength right now though.

E.T.F.'s

PAST TOP PICK

(A Top Pick Feb 11/20, Up 57%) He had it as a tactical play, which he holds for 3-6 months, not a core position. Once he makes his 20-25%, he's out and doesn't pay attention to what happens after that.

E.T.F.'s

SELL ON STRENGTH

Not early in this play. Oil prices are getting back to the $100 area, but energy stocks won't get back to levels at the time due to the ESG factor. Because of the under-investment in traditional energy stocks, prices may stay elevated. However, it will probably see lower highs per rally. Trimming exposure to energy. Would not add new money and would trim.

E.T.F.'s

COMMENT

Average adviser clients would have 5-20% allocation in energy. It is cyclical and volatile. It could go down. Wouldn't recommend holding more than 20% weighting in the sector. Current energy weighting on the TSX is 12%.

E.T.F.'s

COMMENT

Okay if you are interested in dividends. If you are looking for capital appreciations, there are better choices for this. 2.8% dividend.

E.T.F.'s

BUY

The world is moving away from oil, but in the short term, there could be increased demand to supply. If oil is $60-$80, oil stocks are pretty cheap. Likes the sector to trade, but not for the long term. The biggest investors in green energy are these traditional energy companies.

E.T.F.'s

COMMENT

XEG widely diverges from the price of oil. Why? The large caps take more time to come back. There's mass selling in Suncor, rumoured to be the Saudis, but this should be over. He expects SU to rally. Divestments and general confusion about peak demand impacts fund flows into large caps. It's faster to make the small-caps rally because they need less money. It's very difficult to find mass supply of shares of small caps.

E.T.F.'s

COMMENT

Both the US and Canada governments are now less supportive of the energy sector overall. However, because of cut-back in capital expenditure, the reflation story is positive for the next year. Crude oil prices can climb to $50-$60. Ultimately, this will not be sustainable but you could be over-weight for the next 6-12 months.

E.T.F.'s

COMMENT

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.

E.T.F.'s

WAIT

Canadian Energy Sector and especially XEG-T. XEG-T is a great ETF to play the energy market overall. It is a good core position for the Canadian sector. Seasonally it is strong until May 9. It is based on supply/demand imbalances. It is not working right now but does not mean it will not work soon. The net seasonal period is late July into early October. When he finds weakness through the summer it often work well in the fall. But he would not look at it right now.

E.T.F.'s

COMMENT

The composition of this ETF has become highly concentrated. Five names account for 78% of its value. CNQ and SU account for most it. Both of those names have rallied well compared to their peers as buyers in the US have been stepping in. However, their hedge books are naked to oil prices right now. He would prefer to own small cap names with good hedge books, if you select the right ones he thinks.

E.T.F.'s

COMMENT

How long will oil companies hang onto their dividends before cutting them? $40 is around the break-even for Canadian oil prices and oil is below that today. Globally, there's an oil glut. It needs a lot more demand or a supply shock, but the latter will bankrupt some companies. Cuts to dividends and production are likely. Friday's OPEC news was an alarm to get out of oil. WTI's neckline is $42 and now it's $31. We could return to 2016's $26, but he wouldn't be surprised with a snapback rally. Oil is so difficult for the average trader.

E.T.F.'s

TOP PICK

It's a good buy now, because the oil companies have been efficient and there have been two court decisions favourable to the Oil Sands.

E.T.F.'s

DON'T BUY

Energy is a big part of the Canadian story. The world is serious about climate change. We need balance in the transition away from fossil fuels and limiting pipeline capacity is one of the most idiotic way of doing this.

E.T.F.'s

Showing 1 to 15 of 177 entries

iUnits S&P/TSX Capped Energy ETF(XEG-T) Rating

Ranking : 3 out of 5

Bullish - Buy Signals / Votes : 1

Neutral - Hold Signals / Votes : 0

Bearish - Sell Signals / Votes : 2

Total Signals / Votes : 3

Stockchase rating for iUnits S&P/TSX Capped Energy ETF is calculated according to the stock experts' signals. A high score means experts mostly recommend to buy the stock while a low score means experts mostly recommend to sell the stock.

iUnits S&P/TSX Capped Energy ETF(XEG-T) Frequently Asked Questions

What is iUnits S&P/TSX Capped Energy ETF stock symbol?

iUnits S&P/TSX Capped Energy ETF is a Canadian stock, trading under the symbol XEG-T on the Toronto Stock Exchange (XEG-CT). It is usually referred to as TSX:XEG or XEG-T

Is iUnits S&P/TSX Capped Energy ETF a buy or a sell?

In the last year, 3 stock analysts published opinions about XEG-T. 1 analyst recommended to BUY the stock. 2 analysts recommended to SELL the stock. The latest stock analyst recommendation is . Read the latest stock experts' ratings for iUnits S&P/TSX Capped Energy ETF.

Is iUnits S&P/TSX Capped Energy ETF a good investment or a top pick?

iUnits S&P/TSX Capped Energy ETF was recommended as a Top Pick by on . Read the latest stock experts ratings for iUnits S&P/TSX Capped Energy ETF.

Why is iUnits S&P/TSX Capped Energy ETF stock dropping?

Earnings reports or recent company news can cause the stock price to drop. Read stock experts’ recommendations for help on deciding if you should buy, sell or hold the stock.

Is iUnits S&P/TSX Capped Energy ETF worth watching?

3 stock analysts on Stockchase covered iUnits S&P/TSX Capped Energy ETF In the last year. It is a trending stock that is worth watching.

What is iUnits S&P/TSX Capped Energy ETF stock price?

On 2022-06-24, iUnits S&P/TSX Capped Energy ETF (XEG-T) stock closed at a price of $14.34.

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