Oil, Gas ETFs Keep Ticking Up Along With Prices
May 23rd, 2008 at 12:00pm by Tom Lydon
Unless you’ve been living in a cave, you know gas and oil prices are higher than ever and that one of the few ways to take the sting away (aside from hoofing it everywhere) is with exchange traded funds (ETFs).
It’s getting more expensive to fill up even a mid-sized vehicle, reports John Wilen for the Associated Press. It’s $72 to fill up a Honda Accord, compared with $60 a year ago. It’s $87 to fill up a Ford Explorer SUV, compared to $73 a year ago.
What’s more, pump prices are showing no signs of abating anytime soon.
Oil prices are also continuing their uptick, rising to $132.99. Heating oil is also more expensive, rising above $4 a gallon for the first time.
Many analysts are arguing the the prices for oil have risen well above levels that can be justified by the fundamentals of supply and demand and the word "bubble" is being bandied about.
Bubble or not, hedging the prices with ETF is an option for investors who are hoping to add a little relief to their pocketbooks:
- United States Heating Oil Fund (UHN), up 25.6% since April 10 inception
- United States Oil (USO), up 39.4% since April 10 inception
- United States Gasoline (UGA), up 23.5% since Feb. 28 inception
- United States 12-Month Oil (USL), up 44% year-to-date
The opinions and forecasts expressed herein are solely those of Tom Lydon, and may not actually come to pass. Information on this site should not be used or construed as an offer to sell, a solicitation of an offer to buy, or a recommendation for any product.