Conditions Are Looking Up for Oil ETFs

Looking ahead as we head toward the height of summer driving, U.S. demand may also help support pricing, especially given the recent selloff. Investors seeking an alternative asset to traditional stocks and bonds may consider commodities like oil during the traditional summer doldrums.

“It opens commodities up for attractive valuation, compared to equities and fixed-income, where valuations look stretched,” Gold said.

Related: Oil Services ETFs Look for Relief 

Investors interested in gaining exposure to the crude oil market can take a look at the recently launched ETFS Bloomberg Energy Commodity Longer Dated Strategy K-1 Free ETF (NYSEArca: BEF). BEF tries to provide long-term capital appreciation designed to exceed the performance of the Bloomberg Energy Index 3 Month Forward Index, which tracks movements in the prices of rolling positions in a basket of energy commodity futures with a maturity between 4 and 6 months.

Additionally, the United States Oil Fund (NYSEArca: USO), which tracks West Texas Intermediate crude oil futures, and the United States Brent Oil Fund (NYSEArca: BNO), which tracks Brent crude oil futures, have been popular plays to access WTI and Brent crude moves.

For more news on oil ETFs, visit our oil category.