Article How to Invest in Oil for Long-term Investors

T2W Bot

Staff member
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Most investors desire diversification. It only makes sense not to put all your eggs in one basket.
One of the boons of the age of exchange-traded funds (ETFs) is that it’s now easy to diversify among many asset classes within a regular stock brokerage account. Besides funds based on combinations of stock, there are ETFs that follow the prices of bonds, real estate, precious metals, foreign currencies and more.
One category that should be of interest to all investors is the energy market. We all know that the price of oil and gas fluctuates. These may eventually be replaced by renewable energy sources, but for the foreseeable future they will be a vital part of the global economy. Like all commodities, an investment in oil provides a hedge against inflation. And since the price of oil is only loosely connected to the prices of most other things we invest in, it could provide additional diversification.
How to Invest in Oil You probably know that there are ETFs that track the...

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moka2

Established member
529 14
Meanwhile, the value of USO went from $51.60 to $11.36, a drop of over 75%.

Could you please explain why doe steh ETF loose lot more than the underlying price.... is it becasue the ETF uses leverage? unlike an ETF like SPY which actually holds teh stoak with no leverage?
 
 
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