Given the unprecedented levels of inflation we are seeing, commodities including oil majors will continue to be in popular demand - particularly as winter is two months away and general geopolitical issues persist.
If an investor were to look at a popular fossil fuel ETF, for example, to gain exposure to a broad selection of energy including coal, one might be shocked to see that some of the top holdings included Apple, Microsoft, Amazon, Tesla, Alphabet, UnitedHealth Group and Johnson & Johnson. This is not good in many ways and extremely misleading; a fund branded as fossil fuel is populated with US technology and pharmaceutical names. The worst case is that a retail investor looking for fossil fuel exposure ends up buying a technology and pharmaceutical ETF. ETFs that are mislabelled should be a...
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