Oil Has IYE ETF Slipping All Over The Place

[ETF Trends]

ETF Trends - Keeping a Grip on Exchange Traded Funds (ETFs)

It seems like the skyrocketing cost of energy is getting more headlines than Britney Spears, and the related exchange traded funds (ETFs) can't seem to decide what they want to do about it.
The iShares Dow Jones US Energy (IYE) has long benefited from the price of oil. But lately, this doesn't seem to have been the case, reports Don Dion for Seeking Alpha. The reason for this may be that while oil is at all-time highs, the recent prices have more to do with speculation. It could be why IYE just isn't buying it and keeping pace.
Consider that high oil prices have resulted in record gains for oil andnatural gas companies, not the stocks. Be weary of a sharp drop in oilprices, which is not that unlikely, from slower economic growth and newsupplies from Saudi Arabia. The fund is down 2.9% year-to-date.
The iShares Dow Jones U.S. Oil & Gas Exploration (IEO) has fared better, up 6% year-to-date, but it's more focused on the exploration and production areas of oil (hence the name).
U.S. Oil (USO) is up 10.4% year-to-date.
Oil went higher today in the wake of bad jobs data this morning, reports Polya Lesova for Market Watch. While the unemployment rate rose to 5.1%, its highest level since September 2005, oil rose to $105.81 a barrel.



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