Energy

Introduction to Energy

Many people believe that the search for alternative energy sources will be one of the defining investment themes of the next 20 years. Emerging nations are already struggling with pollution and seeking to develop their energy production in a different way to the West. As a result, a number of funds have been launched to exploit this theme.

These may invest exclusively in alternative energy companies, or they may also invest in traditional energy companies that are building alternative energy production from within. Equally, there are a number of thematic funds investing in, for example, power and water.

A lot of these funds will have high weightings to the US, where many of the world's largest and most technically advanced energy companies are found. As they are relatively concentrated, they will tend to show greater volatility than more broadly based equity funds. Energy consumption is often geared to the economic cycle, with consumers tending to use more energy at times of economic expansion. As a result, energy funds often do better in bull market conditions.

The tax treatment of investments is subject to tax law and HMRC practice which are subject to change. 

OEICs and Unit Trusts

Name1 Year (%)3 Years (%)5 Years (%)Fund Size (M)Yield (%)
Artemis Global Energy I Acc80.49-11.52-19.0848.850.84Buy
BlackRock Natural Resources Growth & Income D Acc84.9632.3927.0452.692.46Buy
Investec Enhanced Natural Resources I Acc GBP82.5930.5316.33106.401.06Buy
JPM Natural Resources B Acc121.087.58-28.85777.430.58Buy
JPM Natural Resources C Acc121.658.42-28.39777.430.73Buy
MFM Junior Oils Trust P79.36-38.80-47.7614.98-Buy

OEICs and Unit Trusts

Name1 Year (%)3 Years (%)5 Years (%)Fund Size (M)Yield (%)
BlackRock GF World Energy D4RF GBP68.965.944.932,114.22-Buy
BlackRock Natural Resources Growth & Income D Inc84.8732.3927.1052.692.46Buy
JPM Natural Resources C Inc121.658.34-28.45777.430.73Buy
Pictet Clean Energy I dy GBP41.7921.9459.91548.33-Buy
Schroder ISF Global Energy C Dis GBP98.58-18.92-25.33483.600.29Buy

Investment Trusts

Name1 Year (%)3 Years (%)5 Years (%)DiscountNAV
Baker Steel Resources Trust105.17-35.68-69.64-30.4942.80Buy
Foresight Solar Limited15.2731.15-7.5898.30Buy
Geiger Counter Ord178.6518.10-39.81-4.4432.44Buy
New City Energy Ord43.64-43.91-58.62-14.9817.79Buy
Premier Energy&Water Trust Securities PLC Ord44.4130.31141.82-10.56184.49Buy
Premier Energy&Water Trust Securities PLC 2020 ZDP 1P8.92----Buy
Tiger Resource Finance PLC Ord 0.1P-20.00-73.33-80.99-39.020.82Buy

ETFs

Name6 Months (%)1 Year (%)3 Years (%)5 Years (%)CurrencySector
Amundi ETF MSCI Europe Energy GBP16.8670.4416.7324.91GBXCommodity & EnergyBuy
DB WTI Crude Oil Booster5.8728.65-64.17-67.74USDCommodity & EnergyBuy
DB X-Trackers STOXX Europe 600 Oil & Gas UCITS ETF 1C GBP18.0866.4314.8421.36GBXCommodity & EnergyBuy
ETFS 1x Daily Short Brent Crude USD-12.97-48.6371.56-USDCommodity & EnergyBuy
ETFS 1x Daily Short Natural Gas USD-14.35-26.2338.8318.64USDCommodity & EnergyBuy
ETFS 1x Daily Short WTI Crude Oil USD-10.60-37.5969.3964.50USDCommodity & EnergyBuy
ETFS 2x Daily Long Brent Crude USD7.37107.72-91.90-USDCommodity & EnergyBuy
ETFS 2x Daily Long Gasoline USD34.5239.94-81.27-78.10USDCommodity & EnergyBuy
ETFS 2x Daily Long Heating Oil USD11.9598.87-85.53-87.91USDCommodity & EnergyBuy
ETFS 2x Daily Long Natural Gas USD----USDCommodity & EnergyBuy
ETFS 2x Daily Long Petroleum USD----USDCommodity & EnergyBuy
ETFS 2x Daily Long WTI Crude Oil USD----USDCommodity & EnergyBuy
ETFS Brent 1mth GBP17.0289.54-52.09-51.85GBXCommodity & EnergyBuy
ETFS Brent 1yr6.8746.70-52.49-51.54USDCommodity & EnergyBuy
ETFS Brent 2yr1.4031.24-47.68-46.93USDCommodity & EnergyBuy
ETFS Brent 3yr-2.4121.55-45.10-45.24USDCommodity & EnergyBuy
ETFS Brent Crude USD6.9258.13-64.62-USDCommodity & EnergyBuy
ETFS Energy USD7.4634.13-59.13-61.85USDCommodity & EnergyBuy
ETFS Heating Oil8.6153.04-54.88-56.70USDCommodity & EnergyBuy
ETFS Longer Dated Natural Gas3.189.79-44.98-51.23USDCommodity & EnergyBuy

VCTs

Name1 Year (%)3 Years (%)5 Years (%)NAVDiscountNDYSector
Foresight Solar & Infrastructure VCT PLC D------VCT Specialist Environmental Pre QualifyBuy
Hazel Renewable Energy VCT1 PLC A Shs 0.1P-8,668.418,668.41---VCT Specialist EnvironmentalBuy
Hazel Renewable Energy VCT1 PLC Ord 0.1P5.6957.4646.26--4.69VCT Specialist EnvironmentalBuy
Hazel Renewable Energy VCT2 PLC A Shs 0.1P-8,668.418,668.41---VCT Specialist EnvironmentalBuy
Hazel Renewable Energy VCT2 PLC Ord 0.1P5.6958.2646.99--4.69VCT Specialist EnvironmentalBuy
Ventus VCT20.8546.37112.96--15.31VCT Specialist EnvironmentalBuy
Ventus VCT 24.3539.69147.75--7.66VCT Specialist EnvironmentalBuy

Disclaimer

Interactive Investor does not endorse any particular product. If you are unsure about whether an investment is suitable for you please seek advice from a financial advisor.