I could buy a oil company stock or a fund of oil companies.
what other ways are there? is there a ETF for this?
thanksWhat is the best way to bet on oil prices?
There are a large number of options. You can buy oil futures through a commody broker. There are a number of ETF's tied to oil stocks, drilling stocks, and oil service stocks.
One ETF is directly tied to the price of oil. USO. It has an expense ratio of 0.50%. Currently trades at about $69.81 a very slight discount to net assets. It is relatively new having been created in April.
The most active ETF participating in energy is XLE. An advantage of this fund is that it pays a dividend, about 1.4%. Its holdings consist of large cap oil and oil service stocks. Expense ratio is 0.24%. Largest holding is Exxon-Mobile, 15.6% of the portfolio. ytd return of 13.5%
There are several other ETF's. OIH, oil service ETF with ytd return of 16.4% and PTH in the same category with 14% ytd.
IXC global energy trust with ytd return of 13.0%. IYE U S energy trust also with return of 13.0%. PXE oil production trust with return of 11.0%.
A major play in drilling besides OIH, would be a stock like NBR, one of the major oil well drillers with about 1300 rigs world wide. As the price of oil has increased, the price of renting a drilling rig has increased even more due to demand and supply. But if the demand for oil decreases, the demand for oil rigs decreases even more. So oil drillers are like a leveraged play on the price of oil.What is the best way to bet on oil prices?
I'd look for a stock investor and get advise from him...Stoke brokers I dont trust....theres a difference between the two.
i invest in small oil company stocks.they go up 500%sometimes
easy bets easy money ;)
You play Commodities futures on the Commodities exchange. A friend of mine makes a living on Pork Bellies. I don't know how you get introduced to a Broker.
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