There are risks involved with short funds, of course. Since oil prices are notoriously volatile, making some of their most rapid movements based on rumors and speculation in addition to the usual factors of supply and demand, these ETFs can swing wildly in one direction to the next. And the effect of high oil prices on the companies isn’t always predictable.
Year-to-date, DUG is down 15.9%.
Naturally, if you think that energy is going to continue on the bull run, there are some other options for you, too, including:
- United States Oil (USO), up 31.7% year-to-date
- United States Gasoline (UGA), up 16.4% since Feb. 28 inception
- PowerShares DB Oil Fund (DBO), up 32.3% year-to-date
