Exchange traded funds (ETFs) are a cushion against the volatility of natural gas and oil, since holding single stocks of those commodities is enough to give an investor the shakes.

The movement of these stocks are tied more to the underlying commodity than to the broader markets, explains Bryan Moore of Seeking Alpha. They can offer you neutral exposure while still reaping the benefits of investing in quality oil and gas companies.

ETFs such as these include:

  • United States Oil Fund (USO)
  • United States Natural Gas Fund (UNG)
  • PowerShares DB Oil Fund (DBO)

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.

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