Energy investors have always assumed that “boom and bust” cycles are unavoidable when looking at this sector. The problem is that today’s energy funds are NOT built for long-term, buy-and-hold portfolios; popular ETFs like XLE and OIH are very top-heavy and are better suited as trading vehicles.
The problem is: How do you build a better energy ETF that is meant for investors?
Today, TriLine Index Solutions, an affiliate of BP Capital Fund Advisors, announced the launch of a more modern, and first of its kind, energy ETF: NYSE Pickens Oil Response ETF (BOON). It is also the first time in NYSE history that they are unveiling an index that honors an individual, in this case T. Boone Pickens, who recently retired from the industry.
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See below for more on this gimmick or value added ETF – you decide
New Energy ETF launched with the backing and vision of T. Boone Pickens Index honors individual for the first time in NYSE’s long history
Redefining energy investing in a convenient ETF
Dallas, Texas, February 28, 2018 —TriLine™ Index Solutions, an affiliate of BP Capital Fund Advisors, today announced the launch of the NYSE® Pickens Oil Response™ ETF (NYSE: BOON), with a ticker symbol honoring the energy leadership of T. Boone Pickens. BOON aims to redefine energy investing by offering a more modern and enhanced way to obtain exposure to energy.
BOON tracks the performance of the NYSE® Pickens Oil Response™ Index, which is owned and administered by ICE Data Indices, LLC and is based on years of research and is crafted in the same innovative spirit as T. Boone Pickens’ plan for American energy—the Pickens Plan. The launch of BOON will mark the eighth time Boone Pickens has been associated with an offering on the New York Stock Exchange.
“We are excited to work with the BP Capital team for the launch of BOON, a new ETF that leverages the performance of the NYSE Pickens Oil Response Index, one of ICE Data Indices’ proprietary index data products. This is the first time in our history that we are unveiling an index that honors an individual, in this case T. Boone Pickens,” said Dwijen Gandhi, Senior Director in ICE Data Indices.
The Index is comprised of equities highly correlated to energy, based upon the price of the global benchmark for oil, ICE Brent Crude. The Index includes not only traditional energy companies, but also firms that are “energy-intensive” end users of energy who have the potential to benefit from the abundance of U.S. supply as well as growing global demand for energy. The inclusion of end users is intended to lessen the effect of the “boom and bust” nature of commodity cycles and attempts to mitigate downsize capture while preserving upside capture. The Index is equally-weighted and reconstitutes annually while rebalancing quarterly.
“We have spent considerable time developing this methodology and are humbled to bring it to the ETF marketplace as an extension of T. Boone Pickens’ legacy,” said Toby Loftin, Managing Principal at TriLine Index Solutions. “We believe this approach better reflects the realities of the changes and future of global energy markets in a post-shale era.”
About TriLine™ Index Solutions:
TriLine Index Solutions was founded as a natural evolution of BP Capital Fund Advisors’ holistic approach to energy investing, as well as a response to the historic meta-shifts currently occurring throughout the global energy landscape. The dynamics of the energy value chain are shifting in the US requiring a redefinition of “energy investing.” The index solutions TriLine™ develops reflect the current reality of innovation in energy production and changing global demand themes, and are focused on differentiated energy indices for passively-managed products.
For more information, please visit http://www.tboonetf.com/.