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Oil ETF

What is 'Oil ETF'

A category of exchange-traded funds that invest in companies engaged in oil and gas discovery, production, distribution and retail. Some oil ETFs may be set up as commodity pools – with limited partnership interests instead of shares – and invest in derivative contracts such as futures and options.

The benchmark target for an oil ETF may be a market index of oil companies or the spot price of crude itself, and funds may be focused on just United States-based companies or invest around the world. There are even inverse ETFs for oil and other sectors that move in an equal and opposite direction to the underlying index or benchmark. Oil ETFs will attempt to track their relevant index as closely as possible, but small performance discrepancies will be found, especially over short time frames.

Explaining 'Oil ETF'

Oil ETFs have a high level of demand from investors because oil is such a pervasive commodity in the modern global economy. Almost every end product used by people, companies and governments is in some way affected by the price of oil, either as a raw component or through the costs of energy, transportation and product distribution.


Further Reading


Return spillovers between white precious metal ETFs: The role of oil, gold, and global equity
www.sciencedirect.com [PDF]
… observations. Details on the distribution of return series are discussed in Section 4.4. There are 2518 ETF observations of silver, gold, oil and global equity, and 1623 observations for platinum and palladium ETFs. Summary …

An inverted U-shaped crude oil price return-implied volatility relationshipAn inverted U-shaped crude oil price return-implied volatility relationship
www.sciencedirect.com [PDF]
… observations. Details on the distribution of return series are discussed in Section 4.4. There are 2518 ETF observations of silver, gold, oil and global equity, and 1623 observations for platinum and palladium ETFs. Summary …

Modeling and predicting oil VIX: Internet search volume versus traditional mariablesModeling and predicting oil VIX: Internet search volume versus traditional mariables
www.sciencedirect.com [PDF]
… observations. Details on the distribution of return series are discussed in Section 4.4. There are 2518 ETF observations of silver, gold, oil and global equity, and 1623 observations for platinum and palladium ETFs. Summary …

A taxonomy of the 'dark side'of financial innovation: the cases of high frequency trading and exchange traded fundsA taxonomy of the 'dark side'of financial innovation: the cases of high frequency trading and exchange traded funds
www.inderscienceonline.com [PDF]
… observations. Details on the distribution of return series are discussed in Section 4.4. There are 2518 ETF observations of silver, gold, oil and global equity, and 1623 observations for platinum and palladium ETFs. Summary …

Expected shortfall assessment in commodity (L) ETF portfolios with semi-nonparametric specificationsExpected shortfall assessment in commodity (L) ETF portfolios with semi-nonparametric specifications
www.tandfonline.com [PDF]
… observations. Details on the distribution of return series are discussed in Section 4.4. There are 2518 ETF observations of silver, gold, oil and global equity, and 1623 observations for platinum and palladium ETFs. Summary …

The economic value of Bitcoin: A portfolio analysis of currencies, gold, oil and stocksThe economic value of Bitcoin: A portfolio analysis of currencies, gold, oil and stocks
www.sciencedirect.com [PDF]
… observations. Details on the distribution of return series are discussed in Section 4.4. There are 2518 ETF observations of silver, gold, oil and global equity, and 1623 observations for platinum and palladium ETFs. Summary …

Downside risk management and VaR-based optimal portfolios for precious metals, oil and stocksDownside risk management and VaR-based optimal portfolios for precious metals, oil and stocks
www.sciencedirect.com [PDF]
… observations. Details on the distribution of return series are discussed in Section 4.4. There are 2518 ETF observations of silver, gold, oil and global equity, and 1623 observations for platinum and palladium ETFs. Summary …

Dynamic dependence between ETFs and crude oil prices by using EGARCH-Copula approachDynamic dependence between ETFs and crude oil prices by using EGARCH-Copula approach
www.sciencedirect.com [PDF]
… observations. Details on the distribution of return series are discussed in Section 4.4. There are 2518 ETF observations of silver, gold, oil and global equity, and 1623 observations for platinum and palladium ETFs. Summary …

Latent Volatility Granger Causality and Spillovers in Renewable Energy and Crude Oil ETFsLatent Volatility Granger Causality and Spillovers in Renewable Energy and Crude Oil ETFs
papers.ssrn.com [PDF]
… observations. Details on the distribution of return series are discussed in Section 4.4. There are 2518 ETF observations of silver, gold, oil and global equity, and 1623 observations for platinum and palladium ETFs. Summary …



Q&A About Oil ETF


What type of fund may be set up as a commodity pool with limited partnership interests instead of shares?

Oil ETFs may be set up as commodity pools with limited partnership interests instead of shares.

How can investors get exposure to inverse movements in the underlying index or benchmark without actually shorting it directly?

Investors can get exposure to inverse movements in the underlying index or benchmark without actually shorting it directly by investing in inverse energy sector exchange traded funds (ETFs).

How will you know if your investment objective has been met ?

You will know if your investment objective has been met when you receive returns equal to those generated from tracking your

What does the benchmark target for an oil ETF tend to be?

The benchmark target for an oil ETF tends to be a market index or spot price of crude itself.

How do some funds focus on just United States-based companies while others invest around the world?

Some funds focus on just United States-based companies while others invest around the world.

Why do investors have high demand for oil ETFs ?

Investors have high demand for oil ETFs because they want exposure to this pervasive commodity .

What is an oil ETF?

An oil ETF is a category of exchange-traded funds that invest in companies engaged in oil and gas discovery, production, distribution and retail.

Can you name at least two ways that almost every end product used by people , companies and governments is affected by the price of oil ?

Almost every end product used by people , companies and governments is affected by the price of oil through either its raw components or through transportation costs .

Are there different types of oil ETFs?

Yes, there are different types.