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Market Vectors Unconventl Oil Gas Etf
Market Vectors Unconventional Oil & Gas ETF (NYSE Arca: FRAK) is an exchange-traded fund (ETF) that tracks the performance of the S&P Global Unconventional Small-Cap Index, which is designed to provide exposure to small-cap companies involved in unconventional oil and gas production. Here are some key facts about the ETF:
**Overview:**
* Ticker: FRAK
* Exchange: NYSE Arca
* Category: Energy
* Asset Class: Equities
* Underlying Index: S&P Global Unconventional Small-Cap Index
* Inception Date: October 26, 2012
**Index Characteristics:**
* The S&P Global Unconventional Small-Cap Index is a float-adjusted market-cap weighted index that consists of small-cap companies involved in the development and production of unconventional oil and gas resources, such as shale gas and tight oil.
* The index is designed to track the performance of the small-cap segment of the unconventional oil and gas industry, which is often smaller and more specialized than the larger integrated oil companies.
**Fund Characteristics:**
* Shares Outstanding: Over 10 million
* Net Assets: Over $200 million
* Expense Ratio: 0.58% (annualized)
* Trading Volume: Over 10,000 shares per day (average daily trading volume)
**Top Holdings:**
* As of March 2023, the top holdings in the ETF are:
1. Pioneer Natural Resources Company (PXD) - 6.2%
2. Cabot Oil & Gas Corporation (COG) - 5.8%
3. Range Resources Corporation (RRC) - 5.4%
4. Southwestern Energy Company (SWN) - 5.2%
5. Sanchez Energy Corporation (SN) - 5.1%
**Industry Exposure:**
* As of March 2023, the ETF has exposure to the following industries:
1. Oil & Natural Gas Exploration & Production (85.6%)
2. Oil & Natural Gas Pipelines (5.4%)
3. Energy Services & Equipment (5.1%)
4. Oil & Natural Gas Refining (3.9%)
**Performance:**
* As of March 2023, the ETF has a 5-year return of approximately 43%, which is higher than the S&P 500 Index over the same period. However, the ETF's performance can be more volatile than the broader market due to its focus on a specific industry.
**Risks:**
* As with any energy-related investment, there are risks associated with the Market Vectors Unconventional Oil & Gas ETF, including:
1. Liquidity risk: The ETF's shares may not be easily sold or traded, particularly in times of market stress.
2. Volatility risk: The value of the ETF's shares can fluctuate significantly in response to changes in energy commodity prices and other market factors.
3. Credit risk: The ETF's investments are exposed to the credit risk of the underlying companies, which could default on their debts.
4. Regulatory risk: Changes in regulatory frameworks or environmental policies could negatively impact the ETF's holdings and performance.
**Tax Implications:**
* The ETF distributes its net investment income, if any, on a quarterly basis. Long-term capital gains and short-term capital gains are distributed on an annual basis. The ETF is taxed as a corporation and distributes most of its income to shareholders.
Please note that this is general information and not personalized investment advice. It is important to conduct your own research and consider your individual financial goals, risk tolerance, and investment horizon before investing in any ETF.