Commodities, Treasury, VXX, all good IMHO. If leveraged even better, but liquid. Personally not interested in SPY or QQQ.
Commodities, Treasury, VXX, all good IMHO. If leveraged even better, but liquid. Personally not interested in SPY or QQQ.
Another benefit of XOP is it is well diversified. XLE is 30% (approx) Exxon and Chevron alone, so it is likely to be more correlated with large cap indexes.
XOP seems to be a good overall candidate indeed.
http://www.etfscreen.com/corrsym.php?s=xop
XOP (SPDR Oil & Gas Expl & Prod)
0.65 IWM
0.50 GDX
0.57 Average
XOP/XLE are correlated by 0.94
XLE and IWM are correlated by 0.66 XLE/GDX: 0.55
XOP/IWM: 0.66 XOP/GDX: 0.50
Since I have all the underlying for XLE, while I still would have to include many small stocks for XOP, since ERX/ERY are 100% correlated to XLE, while DIG/DUG are only 0.94 correlated to XOP,
and finally, since the volume is 4 times higher on XLE...
I believe that I will try to work out the XLE robot.
Pascal
I agree as well. There isn't that much difference between XOP and XLE so that should not be an issue.