Oil & Natural Gas ETFs are on this Week’s Top ETF List

Oil & Natural Gas prices surge, lifts related commodity and industry linked ETFs

Brent Oil, Crude Oil and Natural Gas futures rose by more than 10% last week lifting ETFs investing in Oil and Natural Gas commodities, or with exposure to equities involved in Oil and Gas exploration, production, equipment and services.

Two main factors have impacted the surge in the commodities prices:

• Weakening of the dollar since Federal Reserve Chairman Jerome Powell announced at the recent Jackson Hole Symposium that the central bank may start tapering its bond buying program before year end. Powell’s ambiguous stance weighed heavily on the dollar. The US Dollar Index (DXY), which measures of the value of USD against a basket of currencies fell by -0.86% last week.
• Almost 90% of Gulf of Mexico’s oil production was shut down recently as Hurricane Ida battered the region with strong winds and heavy rain. According to the U.S. Energy Information Administration (EIA), the Gulf produces about 15% of the nation’s oil and 5% of its natural gas.

In Europe, WisdomTree Natural Gas (NGAS), WisdomTree WTI Crude Oil (CRUD) and WisdomTree Brent Crude Oil (BRNT) are three exchange-traded-commodities (ETCs) that track the price of Natural Gas, WTI Crude Oil and Brent Crude Oil respectively rose by more than 8.0% last week.

In America, Invesco DWA Energy Momentum ETF (PXI), which invests in large and mid-cap us energy momentum equities gained almost 17% last week. Invesco S&P SmallCap Energy ETF (PSCE) had a nice run too during the same period and posted 16% gains. This ETF gives exposure to small-Cap U.S. Energy Equities.

OPEC September 1st meeting may set the tone for the upcoming month. It is expected that the oil output policy will remain unchanged and the group will continue with its planned modest production increase.

Honorable mentions: 21Shares Tezos ETP, De-SPAC ETF and Cabot Growth ETF

The 21Shares Tezos ETP (AXTZ) exploded by 41% last week. This Exchange-traded-product seeks to track the investment results of Tezos (XTZ). Tezos is a self-amending decentralized platform for building decentralized applications (dApps). It’s like Ethereum in a way that both blockchains support dApps built using smart contracts. Tezos, however, has a few unique features that distinguish it from Ethereum. The most notable one is the network’s on-chain governance, which allows holders of XTZ, Tezos’ native coin, to vote on the network’s future direction.

Cabot Growth ETF (CBTG) is an actively managed ETF that invests in companies positioned for exceptional secular growth in expanding markets. Its top holdings include Rafael Holdings (23.7%), Akoustis Technologies (13.27%) and GoDaddy (3.71%). The ETF gained 13% last week.

De-SPAC ETF (DSPC) gained 12% during the same period. It is a small ($2.85 million) passively managed portfolio of 25 U.S.-listed stocks that went public through a Special Purpose Acquisition Company (SPAC).

Top 10 ETFs of the Week: Oil & Natural Gas ETFs

Europe

• 21Shares Tezos ETP: +40.9%
• WisdomTree Natural Gas: +12.7%
• 21Shares Cardano ETP: +12.7%
• WisdomTree WTI Crude Oil: +11.6%
• WisdomTree Brent Crude Oil: +11.2%
• WisdomTree Energy : +11.1%
• WisdomTree Gasoline: +11.1%
• KraneShares CSI China Internet UCITS ETF: +10.9%
• HANetf Fischer Sports Betting & iGaming UCITS ETF: +10.9%
• WisdomTree Energy Longer Dated: +10.6%

Americas

• Invesco DWA Energy Momentum ETF: +16.7%
• Invesco S&P SmallCap Energy ETF: +16.0%
• SPDR S&P Oil & Gas Equipment & Services ETF: +15.2%
• Ninepoint Energy Fund: +14.6%
• SPDR S&P Oil & Gas Exploration & Production ETF: +14.0%
• VanEck Vectors Oil Services ETF: +13.4%
• iShares U.S. Oil Equipment & Services ETF: +13.4%
• Horizons NYMEX Natural Gas ETF: +13.3%
• Invesco Dynamic Energy Exploration & Production ETF: +13.3%
• Cabot Growth ETF: +13.0%

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