Energy ETFs to play as gas, oil prices jump

Energy ETFs to buy as crude oil surges

CFRA head of ETF and mutual fund research Todd Rosenbluth analyzes the energy sector on ‘The Claman Countdown.’

Investors looking for safe havens from soaring oil and gas prices can find opportunities in exchange-traded funds.

RECORD GAS PRICES COULD BE HERE TO SAY, EXPERTS SAY: ‘DRIVEN BY EMOTION’

Todd Rosenbluth, CFRA's head of ETF and mutual fund research, recommends the Invesco S&P 500 Equal Weight Energy ETF, which provides heavy exposure to energy companies.

"This is equally weighted," Rosenbluth told FOX Business' "The Claman Countdown" Tuesday. "So you get broad exposure to the oil exploration and production companies, the services companies, the refiners, as well as Exxon and Chevron." 

TickerSecurityLastChangeChange %
RYEINVESCO EXCHANGE TRADED FD TR S&P 500 EQL WGT ENERGY ETF63.50-2.00-3.05%

Though CRFA is expecting an eventual pullback in the price of oil, Rosenbluth emphasized that the energy companies in the ETF are still extremely profitable.

TickerSecurityLastChangeChange %
USOUNITED STATES OIL FUND L.P.74.32-11.13-13.03%
BNOUNITED STS BRENT OIL FD LP UNIT30.82-4.90-13.73%

"So you’re playing the energy companies as opposed to the price of oil," he adds. "But those energy companies are beneficiaries by higher oil prices and by the need for greater supply to meet that very strong demand that’s out there."  

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On Tuesday, President Biden announced a ban on all imports of Russian oil, gas and energy to the United States, targeting "the main artery" of Russia’s economy amid President Vladimir Putin's war on Ukraine.

TickerSecurityLastChangeChange %
GLDSPDR GOLD SHARES TRUST – EUR ACC185.16-6.30-3.29%
IAUISHARES GOLD TRUST37.73-1.26-3.24%
AAAUGOLDMAN SACHS PHYSICAL GOLD ETF UNIT19.68-0.71-3.48%
PDBCINVESCO EXCHANGE TRADED FD TR II OPTIMUM YIELD DIVERSIFIED C17.30-1.75-9.21%

Rosenbluth says the move will put commodity ETFs in the spotlight. 

For ETFs targeted toward gold, he recommends the SPDR Gold Trust, the iShares Gold Trust and the Goldman Sachs Physical Gold ETF. As for commodity ETFs with broad diversification, he recommends the Invesco Optimum Yield Diversified Commodity Strategy No K-1 ETF

TickerSecurityLastChangeChange %
USOUNITED STATES OIL FUND L.P.74.39-11.06-12.94%
UNGUNITED STATES NATURAL GAS FUND LP UNIT (POST REV SPLIT)16.07-0.88-5.19%
UGAUNITED STATES GASOLINE FUND LP PARTNERSHIP UNITS57.54-7.11-11.00%

The national average for gas prices hit $4.25 per gallon Wednesday, according to AAA, with prices ranging from as low as $3.79 per gallon to $5.57 per gallon. Meanwhile, the price of U.S. West Texas Intermediate oil has fallen to $116 per barrel while the price of Brent crude oil is at $119, both easing from previous highs.

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