Do you guys know of any ETFs for Oil on TSX ?
Horizons BetaPro S&P 500 Bear Plus ETF HSD Horizons BetaPro S&P 500 Bull Plus ETF HSU
do you have to worry that horizon is a small subsidiary of a small company? hopefully so big canadian companies (banks?) get into this. especially double leverage. the DIG is good in U.S. but it’s based on index with huge weighting in exxon. not the juice that canadian oils have. also, canadian oils have the benefit of weak C$
what does this mean “canadian oils have the benefit of weak C$”
Taken from a large producer’s quarterly report: “The Company’s operating results are affected by fluctuations in the exchange rates between the Canadian dollar, US dollar, and UK pound sterling. A majority of the Company’s revenue is based on reference to US dollar benchmark prices. An increase in the value of the Canadian dollar in relation to the US dollar results in decreased revenue from the sale of the Company’s production. Conversely, a decrease in the value of the Canadian dollar in relation to the US dollar results in increased revenue from the sale of the Company’s production.” Jovian Capital, which owns Beta Horizons Pro ETF, has a large shareholder interest by Murray Edwards, who is a pretty big deal in Canada to say the least. If Magellan is any example, he’s generous in financing companies in distressed times. These funds are gaining popularity in Canada but you still have a good point.
storko Wrote: ------------------------------------------------------- > what does this mean > “canadian oils have the benefit of weak C$” weak C$ has mitigated the drop in oil to a reasonable degree (in the last month, not before that). if oil drops from 60 to 50 US, and the CAD moves from 1.00 to 1.20 (quoted per U.S. so the canadian dollar weakened), then the oil price in C$ stayed at C$60. and i don’t think there are many currency hedges amongst Canadian producers (in which case, they wouldn’t benefit from the price change. well, they would gross benefit, but they’d have an offsetting loss on the hedge)… i could be wrong about there not being currency hedges.