Gold may be taking off right now, but it’s not the only thing in an uptrend. Energy is also moving higher. Today we turn our energy-minded attention north to Canada. In addition to its political stability, a trait missing from many resource-rich nations, Canada’s proximity to the U.S. ensures a friendly market with a voracious energy appetite. In fact, Canada is the largest supplier of crude oil to the U.S., exporting over 2 million barrels of crude oil to the States every day.

Some market observers speculate that Canada has the second-largest amount of oil reserves in the world, trailing Saudi Arabia. That may or may not prove correct. What is undeniable is that Canada is moving up the list of the world’s top oil producers while other countries struggle to make significant new discoveries. From an income perspective, the oil patch has generated reliable dividends for years. That’s one reason the Claymore/SWM Canadian Energy Income ETF (ENY) looks like an appealing investment.

ENY is conservatively managed and seeks to replicate the performance of the 30-stock Sustainable Canadian Energy Income Index, comprised of Toronto-listed as well as U.S. stocks. Many of the holdings are royalty trusts, known for passing along big chunks of profit to investors in the form of dividends.

To be sure, a fund like ENY certainly performs better and delivers more income to shareholders when crude oil is on the rise. With fees and expenses of 0.65% being offset with a trailing 12-month distribution yield of 5.5%, it’s hard to argue with the income potential ENY offers dividend seekers. This ETF holds a wide array of Canadian royalty trusts, so investors don’t have to worry about finding the best ones on their own. ENY’s top holdings include familiar names such as Encana (ECA), Suncor Energy (SU) and Ivanhoe Energy (IVAN).

One downside to owning royalty trusts or an ETF that focuses on them is that dividend payments can fluctuate almost as wildly as the price of oil. In other words, if you buy ENY, you’ll likely become an oil bull because your payout will go up with the price of crude.

Speaking of crude prices, they appear to be once again attempting a run at $75 a barrel. ENY will be all the more attractive if that important resistance level is cleared. The ETF closed at a new 52-week high today and is picking up bullish momentum. Either way, the dividend might be too good to pass up. To buy into an energy bull market with income potential, go with ENY.