Triple digit oil prices are here to stay – energy sector to benefit

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  • Aii Energy ETF includes all key energy stocks listed on ASX; saves investors time and energy trying to pick winners
  • Provides investors with the ability to take a macro approach to investing by taking a view on the energy sector and benefiting from the sector bias

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Australian-owned sector ETF provider, Australian Index Investments (Aii), believes that with the increase in energy costs worldwide that it might be time for investors to tilt their portfolios towards this growth sector.

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“There are some views in the marketplace that oil stock prices have not yet translated into more widespread gains on the ASX, and importantly, with a basic underlying energy shortage, global demand from economic hotspots like China and India, along with civil unrest in other developing economies suggests that triple digit, long-term oil prices are here to stay,” said Annmaree Varelas, CEO of Aii.

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“The Aii Energy ETF is based on an index of 22 stocks including oil majors such as Woodside Petroleum, Origin Energy, Santos and Oil Search.  Interestingly, the sector ETF does not just include oil producers but also offers exposure to explorers and service companies supplying the energy industry,” said Ms Varelas.
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The beauty of investing in a sector ETF is that investors can take a macro view on the energy sector and not worry about trying to pick winners and more importantly, avoiding the losers.

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“On average, over 80% of the return that the investor generally receives for a stock comes from general market and sector returns, and only 10%-20% of the return actually comes from the attractiveness of the stock. As such, if you can take a macro approach to investing by getting the market and sector right, then you are 80% of the way there,” said Ms Varelas.

Energy Sector Outperforms



Source: Iress complied by Australian Index Investments

Product Information

  • Aii S&P/ASX 200 Energy ETF
  • ASX Code: ENY
  • MER: 0.43%
  • Number of holdings: 22
  • Top 10 holdings: Woodside, Origin, Santos, Oil Search, Worley Parsons, Paladin Energy, Riverdale Mining, Caltex, Whitehaven Coal, Aquila Resources

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The current range of Aii Sector ETFs includes:


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