Is This Oil and Gas ETF Worth Holding in Late July?

Oil and gas prices soared in the first half of 2022 on the back of inflationary pressure and the impacts of the Russia-Ukraine war. The commodity boom has softened considerably since the spring season. Regardless, Canadian energy stocks have still attracted considerable investor interest.

Canadians who are still seeking broader exposure to the oil and gas sector may want to consider the BMO Equal Weight Oil and Gas Index ETF (TSX:ZEO). This fund offers exposure to securities in the oil and gas industries. Shares of this ETF have climbed 30% in 2022 as of close on July 27. It is up 51% in the year-over-year period.

The fund requires investors to pay a moderate MER of 0.61%. Meanwhile, it possesses a high-risk rating due to the volatile nature of this sector. This ETF has been a very strong hold since the March 2020 market pullback. At the time, it slipped below the $20 price point. It closed at $62.20 per share on July 27. That is phenomenal growth over a two-year period.

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Some of the top holdings in this fund include Canadian energy stocks like Tourmaline Oil, Cenovus Energy, Keyera, and Arc Resources. All its holdings are in domestic energy companies. This ETF last paid out a quarterly distribution of $0.55 per share. That represents a 2.8% yield.