ETF Channel Staff
Before the advent of ETFs, investing in oil was not easy for retail investors. If an investor chose a single oil company to invest in to track the price of oil, they could run into company specific events that may have had a negative impact on the share price, but were unrelated to the price of oil.
If they invested through actual commodity exchanges, they were up against professional traders and experienced higher trading costs. Now that many financial firms have created oil ETFs, retail investors have other options. For an investor who is bullish on the price of oil, there are the Powershares Oil Fund (DBO) and for those extremely bullish, there is the Proshares Ultra Crude Oil Fund (UCO), among many other ETFs that can be found in the Energy ETF Screener, and the Leveraged Energy ETF Screener. Bearish investors have options too. The US Short Oil Fund (DNO) attempts to act as a short against the price of oil and bearish investors can also look at the Short Energy ETFs Screener to get ideas.