3 ETF's To Buy If You Think Oil Will Continue To Rise Following OPEC's Decision

Matt Thalman - INO.com Contributor - ETFs


Last week the Organization of the Petroleum Exporting Countries or OPEC announced that the group had to come an "agreement" to reduce oil production. The new deal slated to cut production from an estimated 33.2 million barrels per day down to 32.5 million barrels per day.

While some Wall Street analysts don't believe the production reduction will actually happen, the fact remains that since OPEC made the announcement, the price of oil is up rather dramatically. Prior to the announcement oil was trading around the $44.50 range and has since jumped to the $50 range.

Many investors are looking at the price of oil and wondering how they can get a piece of this action. Let's take a look at three Exchange Traded Funds you can buy if you believe oil prices will continue to increase. Continue reading "3 ETF's To Buy If You Think Oil Will Continue To Rise Following OPEC's Decision"

In Search of the Most Efficient Energy & Commodity ETFs

Adam Feik - INO.com Contributor - Energies


I wrote last week about the best oil ETFs. In the process, I discovered an interesting feature of the PowerShares DB Oil ETF (DBO), of which I had not previously been aware.

Specifically, as I described, other oil ETFs have a practice of automatically rolling into the next month’s oil futures contract when the current month contract expires – even if doing so will cause some price decay, as in “contango,” when the next month’s contract is higher priced than the current months (which commonly happens due to storage costs incurred by the party holding the physical commodity, etc). DBO, on the other hand, designed their ETF to NOT automatically roll into the next month’s futures contract, specifically to address that problem of decay, or “negative roll yield.” Instead, PowerShares uses what it calls an “Optimum Yield” formula to automatically roll into the most attractive near-month futures contract (of the next 13 months). In so doing, DBO thereby claims to optimize the fund’s “roll yield” (whether markets are in a state of contango or the opposite condition, known as backwardation). Continue reading "In Search of the Most Efficient Energy & Commodity ETFs"