What are Oil Sands?
As per Wiki, Oil sands, also called as extra heavy oil or tar sands, is actually a kind of bitumen layered deposit.
These layered deposits made of mix of sand, clay, water and oild & petroleum. They are not common in all parts of the world, but are heavily concentrated in Canada and Venezuela.
What is making as Oil Sands so interesting for investments and oil production?
The high volatility of Crude oil, and its prices have led some people look at alternate sources of energy as covered in the article Alternative Energy Mutual Funds. Now, these Oil Sands are now being considered as the part of the overall world oil reserve.
Which countries of the world have large deposits of Oil Sands Reserves?
Primarily, any country having large sand deposits can have Oil Sands Reserves. But it is Canada and Venezuela which lead the pack. Though USA, Russia and some middle eastern countries also have high deposits of Oil Sands.
What are the investment options available for Oil Sands InvestmentS?
The world of investments always have something or the other for every sector for investments. There are multiple products available in the market for any common investors like you and me, to take benefit of investments in that sector.
Just because oil sands are found only in few specific countries like Canada, it does not mean that an investor sitting in England cannot benefit from that. This investor can as well invest in internatioal Oil Sands ETF or Oil Sands Mutual Funds and reap the benefits if the sector gives good returns.
Are there any indices available for tracking the Oil Sands investments?
Yes, The Sustainable Oil Sands Sector Index (TM) is one such index which can be used as a benchamark to track the investments in Oild Sands Sector.
The Sustainable Oil Sands Sector IndexTM was designed to give investors the maximum exposure to one of the fastest growing industries in the Canadian energy sector. The index is restricted to companies that are highly focused on oil sands production and are expected to increase their oil sands production in the next ten years. There are 17 securities in this index and it has an approx. market cap of 18.1 billion USD.
Any Oil Sands ETF or Oil Sands Mutual Funds which are based upon this index?
Yes. Claymore Oil Sands Sector ETF is the fund which tracks the performance of the Sustainable Oil Sands Sector Index, less of fund expenses.
Ticker Symbols Common Units TSX: CLO
Advisor Class Units TSX: CLO.A
Initial Unit Price $20.00
Income Distribution Primarily Canadian dividend income
Distribution Frequency Quarterly
CUSIP Symbols 183832104
Advisor Class Units 183832203
Management Fee 0.60%
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