Crude Oil exchange-traded funds (ETFs) are investment vehicles that trade like stocks, and offer many of the advantages of direct investment in oil. Crude Oil ETFs consist of either oil company stocks or futures and derivative contracts in order to track the price of crude oil, or in some cases crude oil-related indexes.
3 Benefits of Crude Oil ETFs:
- ETFs offer lower fees and a lower risk profile compared to owning individual oil & gas company stocks.
- Investors do not need to worry about additional costs such as rollover costs and high margin requirements, compared to owning oil futures. ETFs manages these costs for you.
- It is easy to gain exposure to crude oil with just one vehicle (ETF).
Read The 5-Minute Guide to Oil ETFs to learn more about how Oil ETFs offer investors a wealth of choices for executing their particular vision and outlook for crude oil prices.
Below, we’ve provided a list of the top 5 Crude Oil ETFs.
|Symbol||ETF Name||Issuer||Expense Ratio|
|USO||United States Oil Fund||US Commodity Funds||0.45%|
|UCO||ProShares Ultra Bloomberg Crude Oil||ProShares||0.95%|
|OIL||iPath S&P GSCI Crude Oil Total Return Index ETN||iPath||0.75%|
|DBO||PowerShares DB Oil Fund||Invesco PowersShares||0.78%|
|SCO||ProShares UltraShort Bloomberg Crude Oil||ProShares||0.95%|
Read Best Commodity ETFs to learn more about the different types of commodity ETFs from major commodity families including energy, precious metals, agriculture and industrial metals.