Energy ETF
Traditionally the US used to be a large supplier of oil. In recent years they entered the shale gas sector which opened new opportunities for them. It is a no-brainer that this market sector depends heavily on the price of oil. Low oil prices are always a great entry point for this US energy ETF.
Oil prices tend to go up for years in a row or they go down for many years. Of course all companies included in this US energy ETF react on the price movement of oil.
Important to notice is that the price of this US energy ETF is not going down at the same speed and level as oil prices go down but if rumour has it that oil prices will go up this energy ETF reacts with force moving ahead of the oil price rise.
Vanguard Energy ETF
This energy ETF is the US Oil & Gas ETF. Apart from all major American oil companies you will also find some oil & gas contractors in this Vanguard Energy ETF.
Within this energy ETF about 150 different companies are included. Exxon Mobil Corporation is leading the way here with a 21% share. Then Chevron follows with a 10% share just ahead of contractor Schlumberger.
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Vanguard Energy ETF info:
ETF provider: Vanguard
Ticker: VDE
ISIN: US92204A3068
Currency: Dollar
Exchange: NYSE Arca