Saturday, January 10, 2015

Oil is Dropping - The Energy ETF That Might Be a Great Buy

The price of OIL Has dropped significantly in the past year and has yet to see a bottom, currently hovering around $48/barrel. Some think it will go as low as $30/barrel but time will tell. With OPEC not letting up on production its only a mater of time when they decide to reduce production and prices begin to rise.

With that said, some may find individual energy plays to look at such as XOM - EXXON CVX - Chevron or oil drillers. Why not look at buying into an Energy ETF Such as VDE -Vanguard Energy Index Fund ETF Shares and ride them all. I feel building a position in VDE while the prices are low would be a great decision, as yields increase for dividends (which also protects downside) and stock prices getting cheaper who wouldn't salivate at this opportunity.

  VDE - Vanguard Energy Index Fund ETF Shares
Top 10 Holdings (62.01% of Total Assets)
CompanySymbol% Assets
Exxon Mobil Corporation CommonXOM22.16
Chevron Corporation Common StocCVX11.75
Schlumberger N.V. Common StockSLB6.29
ConocoPhillips Common StockCOP4.54
Kinder Morgan, Inc. Common StocKMI4.20
Occidental Petroleum CorporatioOXY3.60
EOG Resources, Inc. Common StocEOG2.72
Phillips 66 Common StockPSX2.37
Anadarko Petroleum CorporationAPC2.29
Williams Companies, Inc. (The)WMB2.09

Build a position, dollar cost average in and collect dividends while you wait!

More to come.. 

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