Energy Bargain Hunters Plow Record Amounts Into ETFs
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Equity investors betting on a rebound in oil are buying shares of smaller drillers and service companies, anticipating a quicker response to changes in crude prices than their larger rivals.
Investment into exchange-traded funds with energy stocks have fallen on a monthly basis from a record $3.13 billion in December, according to data compiled by Bloomberg. At the same time, bargain hunters are increasingly supporting smaller companies such as Energy XXI Ltd. and Sanchez Energy Corp., rather than companies like Exxon Mobil Corp., the data show.