The Energy ETFs listed on US markets are correlated with the prices on the commodity markets but the wide range of performance and volatility ratios signals important differentiating factors
- Market weighted funds will be dominated by the Oil & Gas majors
- Equal weighted funds will on the contrary be tilted in favor of smaller players
- By targeting style factors, some funds will rebalance their asset allocation
- Exclusive focus on oil – or gas – or a mix of both - will affect the sensitivity of the fund
Energy funds with an ESG commitment are part of the Green Economy - Energy ETFs theme