More Exposure to 'Unconventional' Oil Sources as Oil Sands ETF Launches
Franklin Templeton files for exemptive relief to create and market actively managed ETFs. Plus, the week's best- and worst-performing funds.
On Tuesday, June 12, the latest exchange-traded fund that is focused on unconventional but growing methods of extracting energy began trading.
Private-label, ETF-in-a-box provider Exchange Traded Concepts rolled out Sustainable North American Oil Sands ETF (SNDS). The new fund specifically focuses on Canada's oil sands, which in recent years have become more attractive to extract from a cost standpoint as oil prices have risen. Oil sands are what that term implies--large reserves in which a thick form of petroleum known as bitumen saturates through mixtures of sand, clay, and water. In order to convert oil sands to actual liquid fuels, energy firms first must transport the bitumen via pipeline to refineries, and then must use large amounts of energy and water to "upgrade" the bitumen and remove sand and clay, before it can be processed into synthetic crude oil.
Robert Goldsborough does not own shares in any of the securities mentioned above. Find out about Morningstar’s editorial policies.