# Zeo or xeg?



## smallmonkey (Feb 4, 2015)

Hi all, I am a first time investor looking to enter the market due to the recent oil price fall. I am thinking of taking advantage of the low energy etf prices by investing in XEG or ZEO. Today the market is down after nearly 13% increase over the past 3 days due to the cutback of US shale production. What I want to know is..

What is the biggest difference between the two etfs?

What would you recommend?

And lastly wait longer or invest now?

Thanks and looking forward to the responses.


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## 1980z28 (Mar 4, 2010)

I have always purchased and than added

You can pick up a couple of company`s you like,no fees


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## CPA Candidate (Dec 15, 2013)

I'd wait. Production and inventory keep rising. This is no indication that this is going to be short lived. Everyone, including myself, that thought buying in early would lead to massive gains later on has been handed a pile of smoking ashes where their money used to be.


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## rikk (May 28, 2012)

smallmonkey said:


> Hi all, I am a first time investor looking to enter the market due to the recent oil price fall. I am thinking of taking advantage of the low energy etf prices by investing in XEG or ZEO. Today the market is down after nearly 13% increase over the past 3 days due to the cutback of US shale production. What I want to know is.. What is the biggest difference between the two etfs? What would you recommend? And lastly wait longer or invest now? Thanks and looking forward to the responses.


If you google .. e.g. XEG holdings, ZEO holdings, you can quickly see their holdings and therefore the differences; I went with XEG because it's oil (and because there's no way I'm about to try to pick a particular company but I'd like to make a few $$ ... eventually); it's high volume; WTI is currently $48.88 ... I'm thinking you can't go wrong buying at under $50 WTI. Now, I didn't buy for trading purposes ... e.g., almost sold when WTI hit $54 and then would buy when oil goes back down, but said to myself there's not much point, I won't make that much by doing so ... so it's a buy and watch till there may be a peak (shortage) down the road ... or not ... I'm not expecting to make a lot with XEG ... maybe $3 to $5 ... unless there's that peak ... down the road.

Update: So for the heck of it, just looked up my XEG buys ... 10dec14 1000 at $12.41, 17dec14 1000 at $12.25, 05jan15 1000 at $13.58. What may be interesting is that for the last buy, WTI was at $51. Yesterday XEG closed at $14.30 with WTI at ~ $48.00 which says to me, but what do I know, money has been coming back into cdn oil ...


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## jerryhung (Mar 28, 2011)

Ha, I bought ZEO last week since someone suggests it was less volatile than XEG (it didn't do as bad as XEG)... but its volume is horrible
Higher yield though (4.1%)

with Crude up, right now, XEG is +2.5% while ZEO is mere +0.78%

Gonna see how it develops in future


https://www.blackrock.com/ca/individual/en-ca/products/239839/ishares-sptsx-capped-energy-index-etf
http://www.etfs.bmo.com/bmo-etfs/glance?fundId=74668




> With XEG versus ZEO, it comes down to whether mid-smaller cap energy stocks can outperform on M&A expectations, respectively growth profile, versus large cap being favored as the more conservative exposure to the group. ZEO due to its underlying methodology (EW) is *biased away from a strict larger cap flavour*.


http://www.etfinsight.ca/?p=26270


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