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iShares S&P/TSX Capped Energy Index ETF (XEG $24.55)
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iShares S&P/TSX Canadian Dividend Aristocrats Index ETF (CDZ $43.45)
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Vanguard FTSE Canadian High Dividend Yield Index ETF (VDY $68.87)
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Canadian Natural Resources Limited (CNQ $43.30)
Q: The only energy exposure I have is through CDZ and VDY. I'd like to have more in order to balance the heavy financial exposure in those two. I could use XEG for that purpose or single companies. I'd like to keep it simple. I don't "need" a dividend, but it certainly wouldn't hurt. I'd be OK with just CNQ, SU, or CVE to keep it very simple. I don't think Hormuz is going to get sorted out anytime soon, so I'd like to capture the current opportunity of high and rising oil prices, but this would be a long term position. As a complement to the two ETFs I have, XEG is probably best, but you might see more opportunity in a single company, so as to increase the weighting in my current ETFs, which seem focused on dividends. Thank you for continued great recommendations. Love the service.
5i Research Answer:
One (or three) individual companies is always going to have more upside potential than a diversified ETF, but also of course more risk. With the goals of a) generally increasing sector exposure and b) keeping it simple, we would suggest the ETF route here (XEG) for diversification and simplicity.