Memorial Day weekend marks, among other things, summer driving season; and as gas prices creep to record levels, investors may consider an oil related exchange traded fund (ETF) to pump money into their portfolios. Unless you already have some of your assets in oil, are affiliated with oil (such as a refinery, driller or explorer) then chances are you are not gaining anything from these high prices. ETFs allow everyday people access to the boom in oil with a basket of oil companies, reports Joanne Von Alroth for Investors Business Daily. Some of the ETFs available include:
- Oil Services HOLDRs (OIH): Invests in a specified group of oil services companies.
- PowerShares Dynamic Oil & Gas Services (PXJ): A mid-cap growth fund that tracks the performance of oil and gas equipment, services and drilling companies.
- iShares DJ US Oil Equipment (IEZ): Includes companies that are suppliers of equipment or services to oil fields and offshore platforms, such as drilling, exploration, engineering, logistics, seismic information services and platform construction.
- Energy Select Sector SPDR (XLE): big oil companies that develop and produce crude oil and natural gas, and provide drilling and other energy-related services.
Don’t forget to drive safely!
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.