Oil and gas prices soared to heights not seen in nearly a decade in the first half of 2022. The sector benefited from several factors. These included a reinvigorated economy after the COVID-19 pandemic and a threat to production due to the Russian invasion of Ukraine in February. However, threats of a looming recession and increased production have led to softening prices in the second half of the year.
Investors who are still interested in exposure to this sector may want to focus on the BMO Equal Weight Oil and Gas ETF (TSX:ZEO) today. This exchange-traded fund (ETF) is designed to replicate the performance of the Solactive Equal Weight Canada Oil & Gas Index. It offers exposure to Canadian oil and gas stocks. Shares of this ETF have climbed 20% in 2022 as of mid-afternoon trading on September 29. It is up 29% in the year-over-year period.
This ETF has plunged 13% month-over-month at the time of this writing. Investors looking to buy stocks on the dip may want to consider this fund today. Some of the top stocks in this fund include Enbridge, Imperial Oil, Suncor Energy, and Tourmaline Oil. It is considered high risk according to the fund facts. Investors will be forced to eat a middling MER of 0.61%.
The ETF also last paid out a distribution of $0.65 per share. That represents a 3.4% yield.
