TSE:XEG

16.37
0.03 (0.18%) 1d
0

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Investor Insights

This summary was created by AI, based on 3 opinions in the last 12 months.

Based on the reviews from different experts, it can be concluded that the iShares S&P/TSX Capped Energy Index ETF (XEG-T) has shown strong total returns over the past 3 years. However, there is a consensus that there may not be any near-term catalyst for the stock to move higher in the near future. The stock is seen as a late-cycle play, with expectations of sideways and choppy trading, relative underperformance, and a new cycle starting soon.

Consensus
Sideways
Valuation
Fair Value
HOLD

Total return over 3 years is 157%. Total return should be your focus, unless you really need the income. There's value in energy going forward, but no near-term catalyst for it to move higher anytime soon.

E.T.F.'s
BUY ON WEAKNESS

Best way to get exposure to Canadian energy.
Provides dividends.
Excellent returns. 

E.T.F.'s
SELL

Big runup, and then a sideways consolidation. Easy money's been made in energy. Oil likely to move lower and be in a sideways, choppy trading range. For the bulk of this year, and into 2024, energy stocks will go sideways and be relative underperformers. For example, if market's up 10%, energy might be up 8-9%. So they'll be broadly in line with market, but will underperform. They're late-cycle plays, and all his works shows that we're starting a new cycle.

E.T.F.'s
BUY
There's underproduction of oil and supply constraints. Also, US oil reserves were drained before their elections and now needs to be filled whenever oil dips to $70. So, oil has a floor and there remains demand. A good sector to own, especially if China opens next spring. XEG holds Canadian oil stocks, and is market-cap weighted, including CNQ, Suncor and Cenovus among its top holding. ZEO is an equal-weight, so offers a little more diversity. And HXE is the cap-weighted ETF like XEG, but it doesn't pay a dividend. So this is good outside an RRSP. For midcap oil, look at NNRG, but charges a higher MER. It depends on your tax preference and the contents of each ETF.
E.T.F.'s
PAST TOP PICK
(A Top Pick Mar 21/22, Up 8%) Energy sector is not favourable at this time. Longer term, it will do well. Right now, wait for a better opportunity, perhaps late, late December/early January or in February.
E.T.F.'s
BUY ON WEAKNESS
Long term is negative on outlook on for traditional energy (~20 years). Short term, is buying energy names (~5 years). Doesn't think oil will go to $120. Once conflict in Ukraine stops, oil prices will fall.
E.T.F.'s
DON'T BUY
Energy ETF Commodities are sensitive to the cycle: warning. Suggests XEG or HXE, both market-cap weighted in oil producers, but they are dominated by Suncor and CNQ (over 50% of these ETFs). For more diversification, look at equal-weighted ZEO-T. But he prefers HUC-T because it gives you commodity--and not commodity stock--exposure. For all of these, be very, very careful--there could be severe drawdowns in energy if the economy falters in the next 6-12 months.
E.T.F.'s
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
Showing 1 to 15 of 184 entries

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

Ranking : 3 out of 5

Bullish - Buy Signals / Votes : 1

Neutral - Hold Signals / Votes : 1

Bearish - Sell Signals / Votes : 1

Total Signals / Votes : 3

Stockchase rating for iShares S&P/TSX Capped Energy Index 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.

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

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

iShares S&P/TSX Capped Energy Index 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 iShares S&P/TSX Capped Energy Index 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. 1 analyst recommended to SELL the stock. The latest stock analyst recommendation is . Read the latest stock experts' ratings for iShares S&P/TSX Capped Energy Index ETF.

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

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

Why is iShares S&P/TSX Capped Energy Index 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 iShares S&P/TSX Capped Energy Index ETF worth watching?

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

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

On 2024-02-23, iShares S&P/TSX Capped Energy Index ETF (XEG-T) stock closed at a price of $16.37.