Dallas, Texas-based Cushing Asset Management launched its first four ETFs offering exposure to the energy sector late last year, and has enjoyed oil’s rebound through the beginning of 2019.The Cushing Energy and MLP ETF (XLEY) is up 20.08 per cent year to date, while the fund’s index, the Cushing Energy Index (CENI) is up 19.92 per cent against the S&P Energy Index at 16.32 per cent. The Cushing Indices have exposure to master limited partnerships (MLPs) and this is limited within the ETFs to 24 per cent, allowing for income generation within US tax rules.Todd Sunderland, Partner and Head of Quant Strategies at Cushing Asset Management says: “Oil, like a lot of risk assets, after the fourth quarter and horrendous December saw a pretty substantial bounce back with the WTI and Brent achieving their best performance since 2009.”Cushing launches MLP ETFs The fourth quarter performance came, at least in part, from an expectation that the US would bring sanctions on Iran, causing Saudi Arabia and other OPEC members to bring a lot of oil to market, some 1.5 to two million barrels a day. When the waivers were signed unexpectedly, Brent crude price fell substantially from around USD85 a barrel at the beginning of October to its bottom around USD50 in December.OPEC members then reunited with Russia to pull back on production and that set off a rebound, with the Brent price reaching around USD69. To continue reading, please register here for free
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