Guggenheim Canadian Energy Income ETF (ENY) — This exchange-traded fund seeks to track an index of approximately 44 high-yielding Canadian securities in the energy sector, which have a forward annual dividend yield of at least 1.5%. The current distribution yield of EYN is 3.67%. You can see the portfolio and other fund info here.
The ETF is listed on the New York Stock Exchange, but because its holdings are based outside the United States, they may be subject to different taxes and/or penalties. However, because it is an income fund, many of its holdings are generally of a higher quality and may be able to better cover payouts.
T. Boone Pickens appeared on CNBC Tuesday, saying he expected Brent crude oil to be back up at $90 to $100 a barrel in 12 to 18 months. Brent crude rose around $2 to $62 a barrel, while West Texas Intermediate (WTI) light sweet crude gained $1.86, or 3.4%, to $57.12.
Last week, Spain’s Repsol SA ADR (REPYY) made an $8.3 billion bid for Calgary-based Talisman Energy Inc. USA (TLM), the second largest holding in ENY. This is considered to be a sign of further consolidation in the industry.
In the Dec. 22 Trade of the Day, I recommended another of the fund’s top holdings, integrated oil and gas company Suncor Energy Inc. USA (SU). I noted that MBF Clearing Corp. Chairman Mark Fisher said Canadian oil companies offer the best value in this depressed sector.
The weekly chart for ENY shows recent high-volume buying and a new buy signal from my proprietary internal indicator, the Collins-Bollinger Reversal (CBR).
Investors should be aware that ENY is a speculative long-term investment. However, it may be purchased as an intermediate-term trade with an objective of $15, its 50-day moving average and more than 25% above current prices.
