Traders can profit from more oil declines with ETFs such as the ProShares UltraShort Bloomberg Crude Oil (NYSEArca: SCO) and the VelocityShares 3x Inverse Crude (NYSEArca: DWTI). SCO tries to reflect the two times inverse or -200% daily performance of WTI crude oil while DWTI takes the three times inverse or -300% performance of crude oil. [Inverse ETFs to Hedge Against Hurdles Ahead]
The cautious play, and perhaps ultimately the better avenue for energy exposure is with an ETF like the Energy Select Sector SPDR (NYSEArca: XLE) because so few advisors are currently allocated to the energy sector. In fact, the allocation to the sector is the lowest it has been since early 2002, according to MarketWatch.
Energy Select Sector SPDR
