Country ETFs to Top/Flop on Saudi Attack
Looks like the oil price rout will take a break. After an attack on Saudi Arabia’s largest oilfields in Hijra Khurais and the world’s biggest crude processing facility at Abqaiq on Sep 14, supply disruption sent oil prices higher.
“Brent prices grew more than 19% on ICE Futures Europe to $71.95 a barrel, its biggest gain in percentage terms since 1991. Trading in WTI was frozen for a few minutes because of a so-called circuit breaker, which is triggered by a gain of more than 7%. When they finally opened, futures jumped as much as 15.5% to $63.34, the most since 2008,”
Analysts at S&P Global Platts estimated that Brent oil will see a $5 or $10 price surge from its current levels, which could push it to test the $70 range,
In light of this, we highlight a few country ETFs that could shoot up in the days ahead. We also mention the country ETFs that could suffer in the current scenario.
Gainers
VanEck Vectors Russia ETF (
Oil is seemingly the main commodity of Russia. About half of Russia’s exports in terms of value come from oil and natural gas as the country has the
RSX is the most popular and liquid option in the space, with an asset base of $1.18 billion and average trading volume of more than 6 million shares a day. The energy sector accounts for about 40% of RSX, which charges 65 basis points as expenses (read:
Global X MSCI Norway ETF (
Norway is among the top 10 nations in terms of oil exports. With its comparatively low population, oil forms a key part of the country’s GDP. Per the U.S. Energy Information Administration (EIA), Norway is the
The most popular way to play the country is with NORW. The product tracks the MSCI Norway IMI 25/50 Index, charging investors 50 basis points a year in fees.
The ETF is concentrated on energy stocks as these make up for nearly 26% of the portfolio. Thanks to a surge in oil prices, NORW may see solid trading ahead (read:
iShares MSCI Canada ETF (
Canada is also among the world’s top 10 oil producers. The oil, gas and mining sector makes up for about
Global X MSCI Colombia ETF
Oil exports in Colombia account for about
Losers
iShares India 50 ETF (
India is almost entirely dependent on imports for its oil needs. The country is likely to witness a rise in oil import bills, thanks to an uptick in global crude oil prices. Higher oil prices might hurt the fund INDY in the near term.
The Indian rupee
Also, “Saudi Arabia is the
iShares MSCI Japan ETF (
The country has been
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