Oil ETF Investing: Five Ways To Play
August 02, 2010 at 11:29 AM EDT
Commodity ETFs have seen a tremendous surge in popularity in recent years, as the marriage of futures contracts the exchange-traded structure has democratized an asset class that was once accessible only to large, sophisticated investors. Oil ETFs have become particularly popular, as investors have embraced the opportunity to bet on one of the world’s most sought after resources. Because oil is a major cost component for both companies and consumers, many investors have embraced the opportunity to hedge against an increase in costs by establishing exposure to the commodity. And because it is subject to wild price swings–crude has touched both $140 and $35 in recent years–speculators have embraced this resource as an opportunity to generate big profits in a relatively short period of time [also see The Definitive Oil ETF Guide]. Investing in oil through ETFs is not the simple binary process that it once was; there are a number [...] Click here to read the original article on ETFdb.com. Related Stories: Oil ETF Gets Boost From IEA Report USCF Launches Brent Oil ETF (BNO) Finding The Right Oil ETF For A Crude Rally