Q: In the Energy sector, ENB has done quite well over the past 6 months. The opposite has occurred for the producers, such as CNQ and CVE. Is it worth rotating from pipelines like ENB into the producers?
5i Research Answer:
We are not fans of 'fixing' things that are not 'broken'. We would be comfortable keeping exposure to infrastructure and pipelines. The producer sector is cheap, and we would be fine to add some exposure there, but would prefer adds over a swap. We would be far less interested in selling ENB and similar names and switching if capital gains taxes apply to such sales.