Ninepoint Partners is one of Canada’s leading alternative investment management firms overseeing approximately $8 billion in assets under management and institutional contracts. Ninepoint offers mutual funds and ETFs targeting various sectors. The Ninepoint Energy fund is offered in two versions: a Mutual fund and an ETF.
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.
NNRG 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
| Fees | AUM | |
| NNRG.NE ETF | 1.50 | 361 |
| Ninepoint Energy Mutual fund Series F | ||
| XEG – Ishares S&P TSX Capped Energy Idx | 0.55 | 1,762 |
| ZEO -BMO S&P TSX Eql Weight Oil Gas Index | 0.55 | 260 |
NNRG ETF vs XEG and ZEO: Historical performance
Updated daily
| 1yr | 3yrs | 5yrs | |
| Ninepoint Energy Fund Series F* | 4.88 | 133.98 | 21.43 |
Analysis
We are pitting NNERG ETF against two popular alternatives: XEG Ishares S&P TSX Capped Energy Index and ZEO BMO S&P TSX Eql Weight Oil Gas Index. Both these ETFs are passive ETFs that track the energy sector. Since NNRG ETF was launched in May 2021, the performance has been less than one year. However, it’s possible to use the mutual fund version to compare with XEG and ZEO.
As one would expect, XEG and ZEO have lower fees than NNRG. This is not a surprise since NNRG is an active ETF.
In terms of performance, NNRG is a clear winner! The fund recorded a stellar performance both in the short and long term. There is value in picking an active ETF here especially if you are investing in the long term. The following points can explain the exceptional performance:
– NNRG invests in mid cap energy companies while both XEG and ZEO are dominated by large players;
– Active management.
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NNRG Stock price
Top Ten Holdings
Top Ten Holdings as of 03/31/2023
| Athabasca Oil Corp |
| Baytex Energy Corp |
| Cenovus Energy Inc (Alberta) |
| Chord Energy Corp |
| Headwater Exploration Inc |
| Meg Energy Corp |
| Nuvista Energy Ltd. |
| Suncor Energy Inc |
| Tamarack Valley Energy Ltd |
| Whitecap Resources Inc |
NNRG Sector allocation
Sector Allocation as of 03/31/2023
| Oil & Gas Exploration & Production | 80.08 |
| Integrated Oil & Gas | 16.49 |
| Cash And Cash Equivalents | 3.43 |