Investing Port

This ETF offers exposure to the oil services sub-sector of the domestic energy market, making it a potentially useful tool for those looking to target stocks of companies responsible for providing equipment and services to firms engaged in the extraction of oil and gas. PXJ is likely too targeted for those with a long-term focus, but can be useful as a tactical overlay or as part of a sector rotation strategy. PXJ is part of the suite of Intellidex product from PowerShares, meaning that this ETF is linked to an index designed to outperform traditional cap-weighted benchmarks. Those who believe this methodology has the potential to generate excess returns may find PXJ to be the ideal way to access this corner of the U.S. energy market; those not convinced about the methodology may prefer cheaper ETF options such as IEZ.