FUEL - BetaShares Global Energy Companies ETF - Currency Hedged

[frugal.rock]

About
BetaShares is a leading manager of ETFs and other Funds that are traded on the Australian Securities Exchange (‘ASX’). Our aim is to provide intelligent investment solutions, which help Australian investors meet their financial objectives.

Investment Objective
The Fund aims to track the performance of an index (before fees and expenses) that provides
exposure to the largest global energy companies (excluding companies listed in Australia),
hedged into Australian Dollars.

Investment Strategy
The Fund invests in a passively managed, market-capitalisation weighted portfolio of large cap global energy companies. The portfolio is hedged to Australian Dollars with the aim of eliminating the effect of currency fluctuations on portfolio performance.

Top 10 Exposures
COMPANY WEIGHTING
Total S.A. 8.4%
Chevron Corp 8.3%
BP PLC 7.8%
Exxon Mobil Corp 7.5%
Royal Dutch Shell PLC (Class A) 6.3%
Enbridge Inc 5.2%
Royal Dutch Shell PLC (Class B) 4.0%
TC Energy Corp 3.9%
ConocoPhillips 3.2%
Kinder Morgan Inc/DE 2.8%

Sector Allocation
Integrated Oil & Gas 56.1%
Oil & Gas Storage & Transportation 16.4%
Oil & Gas Exploration & Production 11.6%
Oil & Gas Refining & Marketing 8.6%
Oil & Gas Equipment & Services 3.0%
Gas Utilities 1.9%
Heavy Electrical Equipment 1.6%
Industrial Machinery 0.8%

Country Allocation
United States 39.3%
Canada 14.2%
Netherlands 10.3%
France 8.4%
Britain 7.8%
China 5.2%
Italy 3.5%
Brazil 2.3%
Japan 1.7%
Other 7.1%

From attached PDF and
https://www.betashares.com.au/fund/global-energy-companies-etf/

 

[Dona Ferentes]

The standoff for LNG into Europe, especially Germany, from Russian pipelines should only drive the disequilibrium between supply and demand. Apart from the commitments to Asia locking in most of Australia's output, there should be upside.

Vladimir Putin announced he would stop the flow of gas on Friday night if Europe didn’t comply with his demands [to be paid in roubles]. About 40 per cent of Europe’s gas comes from Russia.

On the supply side, somewhere between 30 million tonnes and 50 million tonnes of gas will be lost as sanctions lead to the degradation of existing Russian gas fields and the abandonment of extension projects and/or new start-up projects. On the demand side, between 40 million tonnes and 70 million tonnes of demand for LNG will be created as Europe scrambles to replace Russian molecules.

 

[Dona Ferentes]

Since 24 Feb, so far, the supply response seems to have kept a lid on things (to some extent)

Going into a nthn hemisphere winter will be interesting, as the Russian invasion of Ukraine takes another twist.

 

[Dona Ferentes]

Notice how lots of listed companies are changing their name from Xxxx Mining / Oil / Gas to Xxxx Energy ?

The transition to renewables/ decarbonisation is pulling in the money but it is the conventional sources of energy doing the global economy's grunt work, still.

Unlike the China-sparked super-cycle of the late-2000s, the latest price spike has not resulted in any serious increase in investment, which commentators think would keep energy prices higher in the years ahead.

RBA governor Philip Lowe this week (at CEDA’s annual dinner in Melbourne) ... indicated the significant investment in renewable energy around the world was not being met by investment in existing energy sources that were “depreciating quickly”.

“It is difficult to make predictions here, but it’s probable that the global capital stock that is used to produce energy will come under recurring pressure in the years ahead. “If so, we could expect higher and more volatile energy prices during the transition to a more renewables-based energy supply.”

 

[Sean K]

Notice how lots of listed companies are changing their name from Xxxx Mining / Oil / Gas to Xxxx Energy ?

The transition to renewables/ decarbonisation is pulling in the money but it is the conventional sources of energy doing the global economy's grunt work, still.

Unlike the China-sparked super-cycle of the late-2000s, the latest price spike has not resulted in any serious increase in investment, which commentators think would keep energy prices higher in the years ahead.

View attachment 149768


RBA governor Philip Lowe this week (at CEDA’s annual dinner in Melbourne) ... indicated the significant investment in renewable energy around the world was not being met by investment in existing energy sources that were “depreciating quickly”.

If Russia keep losing the war, going into winter they will go as far as they can to restrict O&G into the EU through Ukraine (and other networks) without forcing NATO Article 5. This could make the price of oil skyrocket. 'Energy' companies could be raking it in over the northern winter.

 

[Sean K]

Anyone else think that these things must go up as O&G exploration and funding is restricted and we keep driving ICE vehicles for longer and longer and need to heat our homes and cook?

Looks like it wants to poke through this resistance.

 

[Chipp]

Anyone else think that these things must go up as O&G exploration and funding is restricted and we keep driving ICE vehicles for longer and longer and need to heat our homes and cook?

Looks like it wants to poke through this resistance.

View attachment 173960

OOO etf seems a little more straightforward alternative to me and a tad more beta , which isnt for everyone , but i like it . But either are a useful ETF no doubt