Q: What is your perspective on this ETF for income in current environment - with regards to safety and risk?
Do you believe that gas and oil has bottomed out?
Do you believe that gas and oil has bottomed out?
5i Research Answer:
It is always hard to call the cyclical energy sector, but we think the sector is priced well and balance sheets are excellent. For enhanced income exposure to the sector we would be fine owning ENCC. It may be a bit quiet this year, but as the global economy eventually improves investors should pay more attention to the sector. Not risk free, but we think of acceptable risk at this time.