One
of the latest inventions of the financial industry is exchange traded
funds. ETF's are designed to track an underlying asset, futures market,
index or basket of stocks. Oil ETF's are designed to track the futures
price of crude oil. Traditionally, investors that want to gain exposure
to crude oil prices have either invested in oil shares or taken a
position in derivatives such as futures or options. Oil exchange traded
funds represent a new opportunity to invest in oil without taking on
the risk associated with outright futures or options positions. The
following investigates the range of crude oil ETF's that are currently
available.
Claymores
Macroshare Oil Up Tradeable Shares (UCR):
This fund seeks to replicate the movement of crude oil(West Texas
Intermediate) with the potential for income produced from short term
U.S Treasuries or purchase agreements. This fund is tailored for
investors that have a bullish stance on oil and want to take a long
position.
ETF
trading secrets revealed by Ex Fund Manager
Claymores
Macroshares Oil Downtradeable Shares (DCR) -
short oil etf:
The fund seeks to replicate the inverse price movements associates with
West Texas Intermediate crude oil with potential to obtain income from
short term U.S Treasuries or repurchase agreements. This Oil ETF is for
traders and investors who have a bearish stance on oil and want to
benefit from the falling price of oil. They can also use this vehicle
as a hedge.
The United States
Oil Fund ETF (USO) is a pure play on
oil that seeks to reflect the performance of the spot price of West
Texas Intermediate light, sweet crude by taking investment positions in
a combination of futures contracts and other oil interests.
You can also gain
exposure to the oil services sector by
investing in exchange traded funds that comprise companies that provide
services to the oil industry. The Oil Holders Service Trust (OIH)
invest in corporations that provide well and site management, drilling
and ancillary products and services for the oil service industry. The
constitute stocks are the largest and most liquid US companies traded
in the oil services industry.
Sel Sector:Energy
SPDR (XLE)
This Oil ETF provides an investment vehicle for traders and investors
to gain exposure to a portfolio of securities as represented by the
Energy Select Sector Index.
Top 10 Holdings include the following:
Exxon Mobil Corp:
21.29%
Chevron Corp: 13.09%
ConocoPhillips: 9.59%
Schlumberger Ltd: 5.52%
Occidental Petroleum Corp: 3.75%
Marathon Oil Corp: 3.19%
Valero Energy Corp: 3.02%
Devon Energy Corp: 2.79%
Halliburton Co: 2.73%
Transocean Inc: 2.70%
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