World energy ETF

It goes without saying that the large oil companies dominate this world energy ETF. This domination makes this particular energy ETF very much predictable, which is a good thing in my book.

Our mission as traders is reasonable simple: getting in when oil and gas prices are on a low for some time and then being patient for the eventual rise in prices.

Mind though, you will have to keep in mind that stock prices (and the price movement of this world energy ETF) cannot be translated on a 1 to 1 basis upon the current prices of oil and gas. Sometimes stock prices precede the price movement of oil and gas and sometimes they lag. That is the real challenge here.

Amundi ETF MSCI World Energy UCITS ETF

This Amundi World Energy ETF tracks the MSCI World Energy index. Taking a look at the companies which are included in this Energy ETF one wonders whether the name World  Oil & Gas wouldn’t be more appropriate.

The largest company within this world energy ETF is Exxon Mobil with a share of 15%. Then ChevronTexaco and Shell (A&B) follow with a share of 7% each. BP and Total each account for 5%, the same goes for oil & gas contractor Schlumberger.

Geographically the US dominates this world energy ETF with a 60% share so you have to take into account the price of the Dollar and its impact on this ETF. Canada comes in second with a 10% share, then the United Kingdom and The Netherlands follow with 8% each. The rest is being spread among many European countries.

A very conspicuous character of this world energy ETF (and in my opinion a wrong decision) is not including Russia in this ETF. Being a European investor myself I also would be happier with a smaller share for companies originating from the United States. But things be as they are, the oil and gas market sector is predominately a market where the US rules.

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