Q: NXF is a covered call EFT. Do you have a recommendation for an energy sector ETF that does not sell covered calls? Within my RRSP, I would like to own two ETF’s, the energy sector, to hold my energy related investments. Is there a rule of thumb to guide the percentage one should put into each (ie: 25% in a covered call ETF; 75% in an ETF which does not sell covered calls)?

Thanks for your help.

Q: I have followed Rick Rule for a couple of decades now and always find him to be a valuable source of insight regarding the natural resources sector. Lately, he has been saying that he sees a big opportunity in the oil and gas sector because it is so "hated." A contrarian, Rick says he "loves hate." However, I am a bit confused--I don't see the "hate." For example, while a barrel of WTIC at $60 is not great, the unit price of XEG is at a 10 year high, and all of my oil and gas stocks are doing well.

Rule believes that the price of oil is bound to increase because of the recent lack of capital expenditure in the sector (he cites $1-2 billion per day of under-investment), and as a result the related equities will do well.

Do you share Rule's belief that the sector is undervalued ("hated") and therefore a good investment given a 5 year time horizon?

Thanks as always for your expertise.

Q: I would like to purchase an energy ETF. XEG is a Capped Energy Index while ZEO is an Equal Weight Index. What do you prefer & why. Thanks … Cal