Oil Prices Near $100 Lift Energy Income ETF to New Heights
Oil prices have risen to nearly $100 per barrel, causing Wall Street to feel the pressure. The S&P 500 fell 0.4% and the Dow Jones Industrial Average dropped 520 points on Tuesday.
The Amplify Energy & Natural Resources Covered Call ETF (NDIV) has returned 40.8% year-to-date, more than double the average for its Materials category. This fund is built as an inflation hedge, pairing dividend-paying energy and natural resource stocks with monthly covered calls to target 10% or more in total annualized income.
The top holdings in NDIV include Crescent Energy Co., Northern Oil and Gas, Inc., AngloGold Ashanti, Petróleo Brasileiro (Petrobras), and Noble Corp. These companies have seen significant gains due to the surge in energy prices, with Crescent Energy topping Wall Street's second-quarter estimates and Petrobras posting record output.
The potential for inflation data this week could move markets further, with economists expecting a 5.4% pace in Thursday's wholesale report and a 3.3% reading in Friday's consumer inflation report.