PSCE: Don't Sell Now, U.S. Out Of Levers To Drive Oil Lower

Nikola Lapenna 251 Followers Follow Summary The Invesco S&P SmallCap Energy ETF offers concentrated, unhedged exposure to small-cap U.S. energy names poised to benefit from elevated oil prices. PSCE's portfolio of 33 domestic E&P companies is uniquely positioned to capture full upside in a supply-constrained, high-oil-price environment due to minimal hedging. The fund's 0.29% expense ratio, 2% dividend yield, and low operational risk from geopolitical conflict make it an attractive tactical energy allocation. I recommend accumulating PSCE on oil price pullbacks, viewing it as a multi-year opportunity amid ongoing global supply deficits and persistent geopolitical tensions. Getty Images PSCE At A Glance As I said back in June, once the oil market breaks, this fund, among others, will soar. It may have been delayed a bit as the Trump administration has pulled some levers to keep oil below $100, but with the This article was written by Nikola Lapenna 251 Followers Follow With over three years of finance and consulting experience, Nikola is laser focused on finding value in North American public equities and ETF's. His professional experience includes corporate credit risk analysis, consulting for government entities, and venture capital analysis in the med-tech space. More recently, Nikola has helped investors narrow down better options for ETF's - every asset manager seems to have similar offerings these days. Nikola is not a licensed financial advisor and nothing in his commentary here on Seeking Alpha should be regarded as advice. All of his opinions are his own, and not on behalf of any other entities. Analyst’s Disclosure: I/we have no stock, option or similar derivative position in any of the companies mentioned, but may initiate a beneficial Long position through a purchase of the stock, or the purchase of call options or similar derivatives in PSCE over the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article. I traded PSCE in August and have reduced my position as of today, but will continue to trade on adhoc basis. I also hold Whitecap Resources, Lycos Energy, and Canadian equity ETFs with meaningful oil exposure Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.