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Oil ETF?

Discussion in 'Exchange Traded Funds (ETF)' started by Chris C, 28th Jan, 2009.

  1. Chris C

    Chris C Well-Known Member

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    Does anyone know of an Oil ETF or Managed Fund like the GOLD ETF? I haven't been able to find anything like it.

    I'm just looking to getting some exposure to the price flucations in the oil price, and was wondering what people think the best way to go about it would be.
     
  2. Simon Hampel

    Simon Hampel Co-founder Staff Member

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    Don't know of any which are exclusively invested in oil stocks. I know of several with broad exposure to resources though.

    If you look at how far funds like CFS Global Resources have fallen since the resources crunch started in June last year, and if you believe that commodity prices have now bottomed or a near the bottom, then there may well be opportunity in this area ?

    Just remember that commoditied based stocks (and hence funds/ETFs which invest in them) are highly volatile (in both directions).

    There may be some more targeted ETFs listed in the US - but that would involved buying foreign listed ETF shares ... not impossible, but a bit of a pain.
     
  3. Chris C

    Chris C Well-Known Member

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    Thanks for the suggestion, Sim, though I'm not looking for exposure to all commodities at this stage, just a select few, particularly oil given its very limited production capabilities and the prospect reaching peak oil production in the not too distant future. So I think it is a good longer term bet if you are think the world isn't going to end as we know it.

    Also I'm not certain of the direction of commodities in general in the short term, but I'm reasonably bullish in the medium term (12+ months) based on my expectations that the large and rapidly growing economies of Asia and South America will continue their rapid growth in the medium to long term placing a lot of strain on the limited supply of commodities.

    I am more inclined to invest in something that I can trade in on the ASX.
     
  4. Chris C

    Chris C Well-Known Member

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    Well after being pissed off that I didn't follow my instincts back when oil was below $40 a barrel, with a bit of luck, I might get another opputunity to buy in at good value, as it seems that oil might fall back to reasonable value if these current global woes continue, particularly if people also start to question whether China can continue to grow as rapidly (I'm starting to have serious doubts).

    So I was just wondering how other people on these forums, have gone about, or plan to go about getting exposure to the oil price given we still don't have an oil etf here in Australia.
     
  5. bundy1964

    bundy1964 Well-Known Member

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    We do have warrants to cover oil trades.

    NymexOil ZCLKZA Long $3.48
    NymexOil ZCLKZQ Short $1.92

    Pricing is from the 5th so a bit out of date.
     
  6. thembi

    thembi Member

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    Oil ETF listed on ASX

    Its an old thread can as of last week a new Oil ETF was listed on ASX.

    It is trading under ticker "OOO" and is promoted by BetaShares.
     
  7. Chris C

    Chris C Well-Known Member

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    Thanks thembi, unfortunately I really needed this back when oil was <$40 barrel.

    But it will be good to know for the future.
     
  8. thembi

    thembi Member

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    Chris,
    No problems - you never know...