A Canadian Income Play (ENY)
It's always a good idea to be looking for income-generating investment ideas, and that's just one reason to like the Claymore/SWM Canadian Energy Income ETF (NYSE: ENY).
ENY is a play on the boom in western Canada's oil sands. It is worth noting that Canada is the largest supplier of crude oil to the U.S. and has the second-largest proven oil reserves in the world.
ENY eeks to replicate the performance of the 30-stock Sustainable Canadian Energy Income Index, which is comprised of Toronto-listed stocks and a few U.S.-listed names.
The bulk of the names featured in ENY are Canadian royalty trusts, which are known for their tax advantages and robust dividends and yields. ENY itself sports a yield of more than 5%.
Top holdings include Suncor Energy (NYSE: SU), Baytex Energy Trust (NYSE: BTE) and Canadian Natural Resources (NYSE: CNQ).
The ETF Professor views ENY as a great way for conservative investors to get exposure to the energy while generating some income along the way.
