Friday, July 27, 2012

Commodity HQ: The Five Minute Guide To Oil ETFs

The world still largely runs on crude oil, and that ever-present demand coupled with erratic shifts in supply, makes it a volatile, liquid, and popular instrument for investors, traders, and speculators alike. Savvy individuals have always had the option to try to play oil prices through the equities of multinational energy companies and/or smaller independent exploration and production (E&P) companies, as well as actual oil futures themselves [see also 25 Ways To Invest In Crude Oil].


These instruments have notable drawbacks, though, including imperfect correlation to actual oil prices (for the energy company stocks) and high margin requirements (for oil futures). Enter oil ETFs. These products give traders many of the advantages of direct investment in oil, but in a vehicle that is much more convenient for the average individual investor [for more commodity news subscribe to our free newsletter].

Please follow this link for more:
http://commodityhq.com/2012/the-five-minute-guide-to-oil-etfs/

No comments: