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Crude oil ETFs (exchange-traded funds) are a great investing option that take advantage of the energy boom.
Crude oil futures hit near a six-week high in mid-April. Moreover, U.S. crude oil production is booming, averaging around 3.22 million barrels at the end of 2013 according to the U.S. Energy Information Administration (EIA).
When offshore production is added into the equation, the average number of barrels produced per day has risen to around 7.84 million. That makes the U.S. accountable for 10% of the world's total oil production right now.
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Crude oil ETFs, which consist of oil company stocks or futures and derivative contracts that track the price of oil or oil-related indices, take advantage of the surging energy sector, with added advantages over other investing options.
For instance, the buyer need only make a single purchase of a pre-bundled ETF at a modest fee, and in return gets instant exposure to the price of oil. Moreover, oil ETFs carry inherent tax advantages compared to other investing alternatives – like mutual funds – because capital gains taxes aren't incurred until the fund is sold.
We've spotlighted ten crude oil ETFs to help get you started…
Crude Oil ETF List
*All financial data reported on April 24, 2014.
- United States Oil Fund LP ETF (NYSE: USO): USO stock traded at $36.91 per share, with a change of -0.24% compared to the previous close. The ETF has a market capitalization of $613.53 million, and a five-year return of more than 21%. Its beta ratio is 1.06.
- United States 12 Month Oil Fund LP (NYSE: USL): Shares traded at $44.66, up 1.4% in 2014, and with a five-year return of 40.58%. USL's market cap is $58.7 million. It has a price-to-earnings ratio of 16.41, and a beta ratio is 1.00.
- United States Short Oil Fund (NYSE: DNO): DNO shares traded at $32.30, up 0.28% since the previous close. DNO stock is down 3.71% in 2014 and 14.43% year-to-date. The ETF has a market cap of $13.11 million, a beta ratio of -1.15, and earnings per share (EPS) of -$5.04.
- ProShares UltraShort DJ-UBS Crude Oil ETF (NYSE: SCO): Shares of this crude oil ETF cost $27.69, down 8.3% in 2014. SCO stock has a 52-week range of $26.51-$41.93. The ETF has assets of $368,345 million with a beta ratio of -2.08.
- PowerShares DB Oil Fund ETF (NYSE: DBO): The price of the stock was $28.94 with a 52-week range of $24.96-29.57. Shares are up 12.03% over the last year, and 1.86% in 2014. The ETF has assets of $318,600 million and a beta ratio of 1.12.
- iPath S&P GSCI Crude Oil Total Return (NYSE: OIL): Shares are up 2.25% in 2014, trading at $24.25 per share. The ETF's market cap is $239.09 million, the beta ratio is 1.12, and OIL stock has a five-year return of 23.06%.
- PowerShares DB Crude Oil Double Short ETN (NYSE: DTO): The stock of this crude oil ETF was priced at $31.95, with a low five-year return of 79.42%. Year-to-date, DTO stock is down 5.75%. The ETF's market cap is $131.92 million, with a beta ratio of -2.11.
- ProShares Ultra DJ-UBS Crude Oil (NYSE: UCO): UCO stock traded at $35.34, up 4.69% year-to-date. With a market cap of $88.86 million, UCO's beta ratio is 1.98.
- VelocityShares 3x Inverse Crude ETN: Shares traded at $26.77, down 41.17% over the last 12 months, and down 11.86% in 2014. The ETF has a market cap of $20.51 million.
- Oil Futures Contango ETN (NYSE: OILZ): Our final entry on the oil ETF list is OILZ. OILZ stock has a 52-week range of $25.17-$25.54, and shares traded at $25.26 on April 24. The ETF has a market cap of $10.1 million.
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