Energy ETFs Follow Oil Prices Lower

By Francesca Fontana

Exchange Traded Funds with high exposure to the energy sector fell Thursday as oil prices dropped for the third straight day on rising supply and U.S.-China trade tensions.

Among the ETFs trading lower are the Direxion Daily Energy Bull 3x Shares (ERX), Energy Select Sector SPDR Fund (XLE), and VanEck Vectors Oil Services ETF (OIH).

The Rafferty Asset Management-issued ERX is a leveraged ETF that seeks to provide 300% of the exposure to the S&P Energy Select Sector Index, according to ETF.com. Among its top ten holdings are NextEra Energy Inc., Duke Energy Corp., and Dominion Energy Inc. ERX falls more than 10% to $17.58, according to FactSet.

XLE, issued by State Street Global Advisors, tracks a market-cap-weighted index of U.S. energy companies in the S&P 500, according to ETF.com. Among its top ten holdings are Exxon Mobil Corp., Chevron Corp., and ConocoPhillips. XLE loses 3.6% to $61.22.

OIH, issued by VanEck, tracks an index of 25 of the largest U.S.-listed, publicly traded oil services companies, according to ETF.com. Among its top ten holdings are Schlumberger NV, Halliburton Co., and TechnipFMC PLC. OIH falls 5.3% to $13.96.

U.S. oil inventories rose to their highest level since July 2017 and domestic oil production neared a record in data released on Wednesday, sparking fears of another supply glut. West Texas Intermediate futures were down 5.3% at $58.19 a barrel in midmorning trade in New York, on course for their sharpest daily drop so far in 2019 and set to close at a two-and-a-half-month low.

Write to Francesca Fontana at [e-mail]

(END) Dow Jones Newswires

May 23, 2019 12:20 ET (16:20 GMT)

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