Strategas Asset Management’s Post

The world’s #energy and #power systems are undergoing dramatic change, and with more than $5T in nondiscretionary spending each year the energy transformation presents enormous opportunity. With NETZ, investors can access “old-economy” businesses across infrastructure, transportation and materials that are transforming the systems that underpin how we use energy and power. Learn more with Portfolio Manager Eli Horton at NYSE: https://tcwgrp.com/apt0ze For fund disclosures, top 10 holdings, and more information on the TCW Transform Systems ETF (#NETZ): https://etf.tcw.com/netz/

Given the recent strength in Energy, investors may want to consider an allocation to the Invesco Dorsey Wright Energy Momentum ETF ($PXI). This ETF invests in small, mid, and large cap Energy stocks that have favorable relative strength characteristics. Current exposure is 20% large cap, 25% mid cap, and 55% small cap. To learn more: https://lnkd.in/eUFZnznf

Really exciting to see this launch…providing an opportunity for investors to gain exposure to the global energy transition initiative at the very start of the supply chain…#criticalminerals exploration and production #mining companies on the #tsx and #tsxv.

I had a great chat recently with Joanna Mather, the wealth editor at The Australian Financial Review about our latest research on ETFs. You can read her article here: https://lnkd.in/eh8WXeeS In it, we discussed the September 2023 Stockspot ETF Report and the latest developments in the ETF world. Interestingly, cash, uranium and technology ETFs all had a great year to 30 September 2023. Cash ETFs alone attracted more than $1.6 billion in funds under management, and they now collectively manage more than $4 billion. Active ETFs (ETMFs), renewable and solar ETFs struggled during the same period and experienced significant outflows and/or price declines. To read our free research on why investors are turning to cash ETFs and to the latest ETF investing trends, visit this link: https://lnkd.in/ghC7-Yu

In the spreadsheet above I have tracked the earnings estimates for the Energy Sector ETF (XLE). The column under the date 9/6/2023 has a letter that represents the movement in 2023 earnings estimates since the most recent print (7/6/2023). “U” means 2023 estimates are UP in the last 60 days. “D” means 2023 estimates are DOWN in the last 60 days.

In the spreadsheet above I have tracked the earnings estimates for the Energy Sector ETF (XLE). The column under the date 8/8/2024 has a letter that represents the movement in 2024 earnings estimates since the most recent print (6/8/2024). “U” means 2024 estimates are UP in the last 60 days. “D” means 2024 estimates are DOWN in the last 60 days.

I think these two pictures reflect why our portfolios have done well the past 3 years. We took an overweight position into Energy over 2 years ago. Below is the performance of the energy sector (XLE ETF) vs the S&P500 (SPY ETF) over the past 3 years.   But even after this huge outperformance you can see that “Energy” is still only a 4% weighting in the S&P500.   We continue to see managers shrug off Energy for many different reasons. There has been a fundamental shift of the Energy companies to not fund growth through debt or share issuances. Instead they have pivoted to low leverage and growth using cash flow. Will investors care? Time will tell.

Hedge Funds vs. European Consumers? Gas Bounce May Be Ephemeral Net-long investment fund (#hedgefund) positions on Dutch TTF #naturalgas #futures are the greatest in more than two years, with liquidation implications. To form a foundation, #European gas prices may follow the example of US gas toward the low-price cure below €20 a megawatt-hour. The full report is on the Bloomberg terminal here: https://lnkd.in/exiA9KAS {BI COMD} Bloomberg Intelligence #commodities

Today, we celebrate an exciting milestone with the introduction of our first ETF, the Westwood Salient Midstream Enhanced ETF (NYSE: MDST). Leveraging our portfolio management team’s expertise in the energy sector, MDST combines an energy infrastructure portfolio with an options overlay to help generate high distributable income. As we enter this next phase of Westwood’s journey as an asset manager, we remain committed to developing innovative investment vehicles that meet the evolving needs of investors. Learn more about Westwood’s ETF market debut by clicking on the image. For more information on MDST and risk and disclosure, please visit westwoodetfs.com #ETF #MDST #Portfolio #Energy #Investment #Market

Continued…… Technological advancements have had a profound impact on the natural gas industry. Innovations in extraction and production have increased supply, but ongoing research into renewable energy sources and energy storage solutions could influence future demand dynamics. The market sentiment, driven by speculative trading and investor behavior, can also play a role in natural gas price movements. Traders often react to news events, economic data releases, and geopolitical developments, which can lead to short-term price volatility. Technical Analysis future price movements. The $2.00 support level is particularly significant in this context. If the market decisively breaks below this level, it could signal further declines, attracting more selling. On the other hand, a strong defense of this level might attract buyers, potentially leading to a price rebound. The natural gas market is at a critical juncture as it tests the $2.00 support level. Various factors, including supply and demand dynamics, economic conditions, geopolitical influences, weather patterns, technological advancements, and market sentiment, will play a role in determining future price movements. Investors and traders should closely monitor these factors to make informed decisions. As we move forward, the natural gas market will likely remain a focal point for energy market participants and analysts. The interplay of these various factors will continue to shape the landscape, influencing price trends and trading strategies. https://lnkd.in/e5m2Ds2K