Oil exposure
by pvbemmelen | December 5, 2014 6:17 am
Hi Guys,
Following the recent drop in oil[1] prices, I would like to add some oil exposure to my portfolio. Do you guys have some tips/ ideas on good oil exposure? I do not like to buy individual equities, so would welcome ETF/ Index ideas.
Your response is much appreciated!
Cheers, Peter
Endnotes:
- oil: https://www.stockgumshoe.com/tag/oil/
Source URL: https://www.stockgumshoe.com/2014/12/microblog-oil-exposure/
There are lots of different kinds of oil stocks — probably the most levered to shifting prices, particularly now that capital budgets are being cut, are the oil services stocks, for which the most popular option is probably OIH or possibly XES (PXJ and IEZ are other options).
For tracking the actual commodity, OIL is an ETN that does a decent job as far as I can tell (ETNs are debt instruments, technically, with the underwriter promising that the note will track the index — in this case, crude oil prices).
If you want broader exposure to the oil sector in one whack, including the big explorers/producers (Chevron, ExxonMobil, etc.) as well as some service names, including both pipeline companies and other service companies (like Halliburton and Kinder Morgan, for example), then there’s VDE or IYE.