Ninepoint Partners, a distinguished name in Canada’s alternative investment landscape, manages an impressive $8 billion in assets, providing a range of investment options including mutual funds and ETFs across various sectors. Among its offerings is the NNRG stock, a dynamic choice for those looking into the energy sector. This ETF, part of the Ninepoint Energy Fund, comes in two distinct versions, allowing investors to select the type that best fits their strategy and investment goals. Whether you’re interested in mutual funds or ETFs, Ninepoint’s NNRG stock stands out as a specialized, high-potential investment in the energy domain.
The NNRG ETF version was launched in May 2021. Both have the same stated objective.
NNRG ETF Objective
NNRG ETF invests primarily in mid-cap companies involved directly or indirectly in the exploration, development, production and distribution of oil, gas, coal, or uranium and other related activities in the energy and resource sector.
The fund is an active ETF. The fund does not replicate an index. On the contrary, the portfolio manager selects stocks that best fit the funds’ stated objective. NNRG is suited for investment with high-risk tolerance.
The fund invests mainly in Canadian companies.
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NNRG Management fees
The management fees for NNRG are 1.50%.
NNRG trades on the Neo Exchange, which is a Canadian stock exchange based in Toronto.
NNRG ETF vs XEG and ZEO Fees
NNRG ETF vs XEG vs ENCC and ZEO: Historical performance
| SYMBOL | 3 YEAR AVG RETURN | 5 YEAR AVG RETURN |
|---|---|---|
| NNRG.NE | – | – |
| Ninepoint Energy Fund Series F | 60.42% | 30.76% |
| XEG.TO | 40.34% | 13.97% |
| ZEO.TO | 31.67% | 13.52% |
| ENCC.TO | 39.57% | 15.56% |
Analysis
Let’s compare NNRG ETF to two well-established alternatives: XEG (iShares S&P TSX Capped Energy Index) and ZEO (BMO S&P TSX Equal Weight Oil Gas Index). It’s important to note that both XEG and ZEO are passive ETFs designed to track the performance of the energy sector. While NNRG ETF was introduced in May 2021, providing us with less than 3 years worth of performance data, we can use the mutual fund version for a comparative analysis with XEG and ZEO.
Unsurprisingly, XEG and ZEO come with lower fees compared to NNRG. This cost differential is to be expected, given that NNRG operates as an active ETF.
ENCC.TO: This covered call ETF has a 39.57% 3-year average return and a 15.56% 5-year average return. The relatively high returns, especially over the 3-year period, indicate that ENCC.TO’s strategy of selling call options on top of holding energy stocks has been effective in generating income, contributing to its overall performance. The covered call strategy is particularly focused on income, making ENCC attractive for investors seeking higher yield. However, it’s important to note that selling call options can cap the upside potential of the underlying stocks during strong market rallies.
When it comes to performance, NNRG stands out as the clear winner. The fund has delivered exceptional results in both the short and long term. Opting for an active ETF, particularly for long-term investments, holds significant value in this scenario. Several factors contribute to NNRG’s remarkable performance:
NNRG’s investment focus on mid-cap energy companies, whereas both XEG and ZEO are predominantly composed of large industry leaders.
The benefits derived from active management, which allows for more strategic and adaptable investment decisions.
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NNRG Stock price
Top Ten Holdings
Top Ten Holdings as of 12/29/2023
| Arc Resources Ltd |
| Athabasca Oil Corp |
| Baytex Energy Corp |
| Cenovus Energy Inc (Alberta) |
| Crescent Point Energy Corp |
| Headwater Exploration Inc |
| Meg Energy Corp |
| Precision Drilling Corporation |
| Tamarack Valley Energy Ltd |
| Whitecap Resources Inc (Pre-Merger) |
NNRG Sector allocation
| Oil & Gas Exploration & Production | 80.08 |
| Integrated Oil & Gas | 16.49 |
| Cash And Cash Equivalents | 3.43 |
Q&A
Is NNRG an ETF?
Yes, NNRG is an ETF that primarily invests in mid-cap companies involved in the energy and resource sector, particularly those related to the exploration, development, production, and distribution of oil, gas, coal, or uranium. It trades on the Neo Exchange in Canada.
Who are the top holdings of the Ninepoint Energy Fund?
The top holdings of the NNRG ETF include a range of mid-cap energy companies, such as Athabasca Oil Corp, Baytex Energy Corp, Canadian Natural Resources Ltd, Cenovus Energy Inc (Alberta), Chord Energy Corp, Headwater Exploration Inc, Meg Energy Corp, Nuvista Energy Ltd., Tamarack Valley Energy Ltd, and Whitecap Resources Inc. These holdings reflect the fund’s focus on mid-cap energy companies.
What stocks are in Ninepoint Energy Income Fund?
While specific stocks in the Ninepoint Energy Income Fund aren’t listed in the provided information, it’s likely similar to the NNRG ETF, focusing on mid-cap companies in the energy sector. For the most accurate and up-to-date information, reviewing the fund’s most recent holdings through official Ninepoint Partners reports or disclosures is advisable.
How big is Ninepoint Partners?
Ninepoint Partners is a significant player in Canada’s alternative investment management scene, overseeing approximately $8 billion in assets under management and institutional contracts. This size reflects its broad range of investment offerings, including mutual funds and ETFs targeting various sectors.