Invest in Oil ETFs

Oil ETFs are designed to track the price of Oil as a commodity, not the performance of companies involved in the oil sector. Unlike other commodity ETFs that can buy the asset and hold it physically, Oil ETFs are based on futures contracts. This means they do not actually track the price of oil today, but its value at a future date. This value is largely determined by investors’ expectations of global levels of oil production (the offer) and economic activity (the demand).

Oil ETFs allow you to gain exposure to the price of Oil as a commodity. They are an easy and efficient way to invest in this popular asset class. Also called the “Black Gold”, today Oil is central to most economies, it can either give them power or sink them. Many businesses rely heavily on oil, either as fuel to transport goods across the world or power industrial processes, or even directly as an input in the production process.