Top 5 ETFs For Beginners

4. First Trust Nasdaq Oil & Gas ETF (NASDAQ:FTXN)

NAV as of September 30: $24.52

First Trust Nasdaq Oil & Gas ETF (NASDAQ:FTXN) seeks to track the investment results of Nasdaq US Smart Oil & Gas Index, which provides exposure to the US oil and gas industry. The expense ratio came in at 0.60% and the total net assets exceed $1 billion as of September 30. First Trust Nasdaq Oil & Gas ETF (NASDAQ:FTXN) has 40 stocks in its portfolio. 

One of the premier holdings of First Trust Nasdaq Oil & Gas ETF (NASDAQ:FTXN) is Occidental Petroleum Corporation (NYSE:OXY), an American company that engages in the acquisition, exploration, and development of oil and gas properties in the United States, the Middle East, Africa, and Latin America. Warren Buffett’s Berkshire Hathaway holds the leading position in Occidental Petroleum Corporation (NYSE:OXY), owning about 20% of the company’s total stock. 

Here’s how Smead Capital Management mentioned Occidental Petroleum Corporation (NYSE:OXY)  in its Q2 2022 investor letter:

“For the quarter, our best-performing stocks were Continental Resources (CLR), Merck (MRK) and Occidental Petroleum Corporation (NYSE:OXY). Despite a steep sell-off in June in the oil and gas stocks, two of our oil stocks made the quarterly list.

If you are wondering how we are outperforming the S&P 500 Index in the first half of the year, look no further than our top three performers. Occidental Petroleum (OXY), Continental Resources (CLR) and ConocoPhillips (COP) soared in value and were barely represented in the S&P 500 Index. To quote Jerry Jones, owner of the Dallas Cowboys, “We are in the first quarter on higher energy prices!””