Claymore has an oil sands ETF in the works. More information can be found at OilSandsIndex.com.The graphic shows the companies in the index but I could not find how the companies are weighted. It does say that the top ten comprise 74.9% of the fund, the largest (but seemingly unnamed) holding is 10.9% of the fund.
This was supposed to come out in Canada when Claymore listed its other ETFs last month but seems to have been delayed and I have not been able to find a reason why nor have calls to Claymore been returned.
They may have pulled it because of the correction underway in energy stocks but that is a guess on my part.
I think the theme is very important for the next ten years even if it does poorly for a few months now.
If anything comes of this I will post more about it.
10 comments:
Roger, Would you expect this to be a high dividend offering similar to sum of the Canadian Royalty Trusts or more of a tech play on new technology to make oil sand extraction profitable?
Would there be tax complications for investors in the US?
oops, meant to say 'some of the Canadian....'
I would expect this to be as high octane of a product as there is. Some clients have an oil sands stock. i use it as a way to add beta in the energy sector, great on the way up and bumps and bruises on the way down.
I owned SU for a couple years. Got out about a month ago. What a crazy stock, as all the oil sands are.
Here's what I wonder. I think it's a great longterm story. But is the volatility ever going to settle down or will it be going up and down $3 a day 2,3,5,10 years from now?
After it's infrastructure is built out, around 2010 or 2008, don't remember, there's talk that it might turn itself into a trust. Then maybe it'd be a sleep at night stock.
SU (personal holding for about a year or so) is certainly no sleep at night stock that is for sure.
Before jumping into this, read the words of someone who worked on one of these projects for a few years:
"If you heat this shale to 700 degrees F you will turn this organic carbon (kerogen) into the nastiest, stinkiest, gooiest, pile of oil-like crap that you can imagine. Then if you send it through the gnarliest oil refinery on the planet you can make this s*** into transportation fuel. In the mean time you have created all kinds of nasty byproducts, have polluted the air and groundwater of wherever you have extracted it."
Comment from
http://beastsbelly.blogspot.com/2005/08/common-misconceptions-about-peak-oil.html
Found through
http://www.econbrowser.com/archives/2005/09/oil_shale_retor.html
I own a few of these names through a mutual fund, so I'm not saying to avoid them. Just before you purchase something this specific, know the industry well.
Paul
Oil sands and oil shale are two things. They've been working the oil sands for decades. It's a proven technology that can break even when oil is in the $30s, if I recall. I think CNQ says they'll break even in the 20s.
Shale is speculative, really tough to do, and requires oil in the $50s to break even. There's been some experiments with it but it's not viable right now.
If oil stays above $50 for long enough, we'll be doing coal-to-liquids and gas-to-liquids before shale.
Expect to see Thermal Decomposition take off before oil shale does. The %Carbon in oil shale is so low that it makes much more sense to convert sewage/municipal waste into oil than extract Kerogen from rocks.
http://www.changingworldtech.com/
Roger,
I believe this ETF wasn't to come out at quite the same time as the other three. The initial press release said something like "in the coming weeks [these other ETFs also] ... will be released".
There's a bit of info in one release on the Canadian site here (select the Sept 8 06 press release) ...
http://www.claymoreinvestments.ca/
pressreleases.aspx
Jay Walker
The Confused Capitalist
Jay,
When the other came out in Canada I found one press release that I recall saying it was going to come out at the same time. Claymore Canada had more on its website about the Oil Sands procdut that it does now.
It is possible I interpeted the release incorrectly but that is how I remember it. But for now, no dice
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