Energy Sector Equity

Energy sector mutual funds and ETFs primarily invest in shares of companies... Energy sector mutual funds and ETFs primarily invest in shares of companies involved or related to the energy sector, including firms that produce or explore alternative energy, coal, crude oil, natural gas. It also includes companies that own pipelines or refineries. In addition, the energy sector encompasses firms that offer services to companies that produce, explore for, or transmit energy. Companies in this sector can include both smaller standalone players, which focus on one aspect of the energy supply chain, and bigger integrated players, which can own and operate across the entire energy supply chain. Companies in this sector can also include energy master limited partnerships (MLPs), which specialize in midstream operations in the energy sector. Additionally, the nuclear industry, both for mining or production, is also part of this industry. Energy sector mutual funds and ETFs can be attractive for investors if the price of a particular energy commodity is rising. Natural gas stocks, for example, usually rise when the price or demand of natural gas futures rise, and vice versa. These funds can also do well when the economy is expanding, because companies deliver greater volumes to the market and see their revenues increase. They tend to offer investors attractive dividend payouts in addition to the potential for capital gains appreciation. However, if energy prices decline, investors can suffer capital losses and may see dividends being reduced or suspended. Last Updated: 12/30/2024 View more View less

Energy sector mutual funds and ETFs primarily invest in shares of companies involved or related to the energy sector, including firms that produce or explore alternative energy, coal, crude oil, natural gas. It... Energy sector mutual funds and ETFs primarily invest in shares of companies involved or related to the energy sector, including firms that produce or explore alternative energy, coal, crude oil, natural gas. It also includes companies that own pipelines or refineries. In addition, the energy sector encompasses firms that offer services to companies that produce, explore for, or transmit energy. Companies in this sector can include both smaller standalone players, which focus on one aspect of the energy supply chain, and bigger integrated players, which can own and operate across the entire energy supply chain. Companies in this sector can also include energy master limited partnerships (MLPs), which specialize in midstream operations in the energy sector. Additionally, the nuclear industry, both for mining or production, is also part of this industry. Energy sector mutual funds and ETFs can be attractive for investors if the price of a particular energy commodity is rising. Natural gas stocks, for example, usually rise when the price or demand of natural gas futures rise, and vice versa. These funds can also do well when the economy is expanding, because companies deliver greater volumes to the market and see their revenues increase. They tend to offer investors attractive dividend payouts in addition to the potential for capital gains appreciation. However, if energy prices decline, investors can suffer capital losses and may see dividends being reduced or suspended. Last Updated: 12/30/2024 View more View less