TradingMarkets 7 ETFs You Need to Know for Monday
When it comes to investing and trading in energy exchange-traded funds (ETFs), the Energy Select Sector SPDRS ETF
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PowerRating) and Oil Service HOLDRs
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PowerRating) are among the most widely traded. But here are a few other energy and oil-related ETFs every ETF trader and investors should know about and watch.
Here are 7 (Oil and Energy) ETFs You Need to Know for Monday
The iShares Dow Jones U.S. Energy ETF
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PowerRating) is another, non-leveraged way for ETF investors to get exposure to the major oil stocks of the Dow Jones U.S. Oil & Gas Index of stocks including Exxon Mobil
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PowerRating) and Chevron Corporation
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PowerRating), which make up more than a third of the index.
Among the more popular leveraged ETFs for short term ETF traders are the ProShares Ultra Oil & Gas ETF
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PowerRating) and the ProShares UltraShort Oil & Gas ETF
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PowerRating). Both ETFs also rely on the Dow Jones U.S. Oil & Gas Index , with DIG being leveraged 2-to-1 to the Index and DUG, a short ETF, seeking to produce two times the inverse of the daily return of the Index.
Most energy ETFs are heavily weighted toward Exxon and Chevron. However Rydex offers the Rydex S&P Equal Weight Energy ETF
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PowerRating). In this fund, energy companies like Marathon Oil
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PowerRating) and Valero Energy
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PowerRating) get equal billing with the majors.
For ETF traders and investors who want exposure to the price of oil itself rather than the share prices of oil companies, the United States Oil Fund ETF
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PowerRating) is one popular choice. USO seeks to match the performance of the spot price for West Texas intermediate, light crude oil.
Short term traders looking for leveraged or leveraged inverse trades on the price of crude oil may consider exchange-traded notes such as the PowerShares DB Crude Oil Double Long ETN
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PowerRating) and the PowerShares DB Crude Oil Double Short ETN
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PowerRating). Both of ETNs are based on the Deutsche Bank Liquid Commodity Index – Oil, with the Double Long DXO providing 200% exposure and the Double Short DTO providing 2-to-1 inverse exposure.
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