ETF Talk: Energize Your Portfolio
Eagle Daily Investor – To build upon last week’s ETF Talk theme of sectors that offer steady and consistent growth, albeit generally at a slow pace, this week’s article focuses on the energy sector. People always need to use energy. With the rapid development of countries such as China, worldwide demand for energy should continue to increase. An exchange-traded fund (ETF) that includes a heavy concentration of gasoline companies is PowerShares Dynamic Energy Exploration & Production (PXE).
This non-diversified fund seeks investment results which, before fees and expenses, correspond generally to the price and yield of the Dynamic Energy Exploration & Production IntellidexSM Index. That index is composed of stocks from 30 U.S. companies involved in the exploration and production of natural resources used to produce energy.
PXE had a strong year in 2012, rising 22%, and it’s up almost 2% in just the first few weeks this year. It also offers an annual yield of 2.13%. Thus, PXE gives investors income, as well as the potential of capital appreciation from its rising share price. The demand for energy, including oil, continues to rise both at home and abroad. With that trend intact, look for the steady gains of PXE to continue.