How to speculate in the oil price - with a calm mind
Oil prices are changing dramatically at the moment, and although the price has generally risen steadily, there are still heavy downward dusts - for example, when the geopolitical situation suddenly changes in one of the major oil producing countries. One can easily speculate directly on the oil price at most trading platforms - for example Markets, where you can also give their positions. But if you want to benefit from rising oil prices and at the same time do not want to play too much games, an ETF exposed to the oil industry may be the solution.
An ETF is a collection of assets that track an index, a commodity, bonds or an amount of shares in an industry like an index fund. Unlike conventional funds, however, an ETF is traded as a common stock on a stock exchange. ETFs typically have a higher daily liquidity and lower fees than shares, making them an attractive option for investors. At the same time, ETFs allow the investor to expose himself to industries rather than individual shares. Men, det er mange ETF'er i de forskellige industrier, så spørsmålet ligger i hvilke som kan være av interesse for deg? If you want to invest in oil, the following ETFs might be exciting to look into. Nedenfor har vi sett på et udvalg af oljeledende ETF'er. For example, they can be traded at Saxo Bank.
ETF for the investor who wants to wonder about the oil price: "United States Oil Fund: (NYSEMKT: USO)"
If you want to speculate directly on the oil price, but do not want the hassle of a future contact, the ETF's "United States Oil Fund" (USO) is quite obvious. This ETF offers direct exposure to the West Texas Intermidiate (WTI) future contract, also known as Crude Oil. The direct exposure is included that the ETF will follow increases and decreases correspondingly to the future contract for Crude Oil. This entails a fairly volatile ETF. The United States Oil Fund is therefore suitable for investors who do not want to trade future contracts, but want to speculate in oil price increases in the short term. The ETF is not suitable for long-term investments as there is a natural fall in prices with investments in future contracts. USO can be traded at Markets - also with gearing if you wish.
ETF for large-cap oil producers: "iShares U.S. Oil & Gas Exploration & Production ETF: (NYSEMKT: IEO) "
IShares US Oil & Gas Exploration & Production ETF (IEO) is an excellent ETF for oil investors who do not want to assume excessive risk. This ETF exposes itself to the biggest oil producers in the industry rather than more speculative small-cap companies. This exposure ensures that the price does not fluctuate too much. On the other hand, you can not expect immediate increases when oil prices rise.
ETF for small- og mid-cap olieproducenter: “SPDR S&P Oil & Gas Exploration & Production ETF: (NYSEMKT:XOP)”
SPDR S & P Oil & Gas Exploration & Production ETF is an attractive ETF for investors who want to expose themselves to smaller companies in the oil industry. This ETF contains small and mid-cap companies operating in the production of oil. This results in an ETF that will fall and rise more than the ETF, which exposed itself to large-cap companies. This ETF is therefore suitable for the investor who is willing to assume some risk, while at the same time wanting a wide diversification within small and medium-sized oil companies.
If you do not want to invest directly in the oil price or oil production companies, you can take a look at the slightly more volatile service companies in the industry. Oil service companies are generally more volatile than the oil producers themselves. This is due to the fact that the revenue and surplus of the services sector closely follows the demand for drilling and transport needs. Thus, when producers lower costs, service companies 'earnings will fall and when producers increase the cost of investing in new production, service companies' earnings are rising sharply.
"VanEck Vectors Oil Services ETF: (NYSEMKT: OIH)"
VanEck Vectors Oil Services ETF is well suited to the investor who is willing to assume any risk of exposure to oil service companies. However, the ETF only exposes 27 shares at the time of this writing, where the three biggest positions - Schlumberger (18.44%), Halliburton Co (14.86%) and Baker Hughes (5.42%) 38.72% of its assets. This large exposure to few companies will of course have a disproportionate impact on its performance.
"SPDR S & P Oil & Gas Equipment & Services ETF: (NEWS: XES)"
SPDR S & P Oil & Gas Equipment & Services ETF could be a better choice for the investor who wants a slightly lower risk but at the same time will expose himself to oil service companies. This ETF is more diversified than OIH because of a larger portfolio of 34 shares. The ETF simultaneously measures every single company. This results in a portfolio that is both exposed to small and large companies in the oil industry service sector. Note, however, that approx. One third of the assets are invested in the drilling industry instead of in services alone.
Which ETF should I invest in?
In the end, the answer to this question is about your perception of the oil industry. The right ETF for you is the ETF that fits with your view of the sector. For the speculator who wants to speculate on the oil price and prefers to trade ETFs rather than "future contracts", the United States Oil Fund is an excellent choice. However, this ETF should not be used as an instrument to speculate on long-term oil fluctuations due to its natural price drop due to its position in the future contract, Crude Oil.
Investors who wish to add oil to their portfolio, while not wishing to take any unnecessary risks, should prefer iShares US Oil & Gas Exploration & Production ETF. This ETF has an exposure to the largest oil producers. However, if you want to take a slightly higher risk, you might want to favor small and medium-sized businesses. The ETF for this is SPDR S & P Oil & Gas Exploration & Production ETF, which is obviously significantly more volatile than iShares US Oil & Gas Exploration & Production ETF because its assets are heavily invested in smaller companies.
If you do not want to invest directly in the oil price or oil producers, you can take a look at the slightly more volatile service companies in the industry. Here the VanEck Vectors Oil Services ETF and SPDR S & P Oil & Gas Equipment & Services ETF could be interesting to look into.