The new T. Boone Pickens ETF might seem like an exciting way to profit from the legendary billionaire's investing skill. But once you read the fine print, you'll realize there are much better profit opportunities elsewhere...
In fact, we'll show you exactly how to access the recommendations our readers have turned into triple-digit profit windfalls.
Now, we certainly understand why investors are interested in the Pickens ETF.
After all, Pickens amassed a fortune in the oil and gas industry, and he's even been a pioneer in the wind energy industry after setting out to build the world's largest wind farm in 2007.
His net worth is well over $1 billion, and that's after donating another $1 billion to charities.
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In short, few people have been as successful as T. Boone Pickens in the energy sector.
But that doesn't mean his oil ETF is worth owning...
Here's everything you need to know about the Pickens oil ETF, and how you can make serious money in the energy sector...
Why T. Boone Pickens' ETF Won't Make You Rich
The NYSE Pickens Oil Response ETF (NYSE Arca: BOON) went live just last week (Feb. 28), but there are two reasons you can find better returns elsewhere.
First, because it's an ETF, BOON merely tracks an index.
Despite the name, you're not getting access to T. Boone Pickens' personal investments or his energy investing expertise.
The ETF simply buys and sells companies that correlate with the ICE Brent Crude Oil Futures Index, and it's managed by TriLine Index Solutions.
While Pickens will have some indirect control, TriLine makes it clear the name of the fund is honorary.
"This is the first time in our history that we are unveiling an index that honors an individual, in this case, T. Boone Pickens," the ICE Data Indices Senior Director said.
And if the fund is able to successfully track the ICE Brent Crude Oil Futures Index, investors would have seen no movement at all this year. Brent futures have ticked slightly down from $65.79 on Jan. 1 to $65.72 today (March 6).
That means they would have already lost money thanks to our second reason...
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Second, the BOON ETF comes with an expense ratio of 0.85%, which is nearly double the average ETF expense ratio.
Consider the expense ratio of the SPDR S&P 500 ETF (NYSE Arca: SPY), which tracks the S&P 500. SPY comes with an expense ratio of 0.09%, almost nine times less than the BOON ETF.
And consider the U.S. Oil Fund (NYSE Arca: USO). USO tracks the daily change in the price of WTI crude oil, which is very similar to what BOON does.
But the USO ETF's expense ratio is just 0.35%, less than half of BOON's.
Make no mistake: Those expenses add up.
ETFs have made passive investing useful for investors precisely due to their low costs, which allow investors to match an overall index without having to pay the steep management fees associated with mutual funds.
As novelty ETFs pop up with expense ratios creeping up to mutual fund levels - they average 1.25% - the high-price ETFs simply don't make much sense.
Instead of paying a sky-high expense ratio to track oil futures, investors can just buy USO instead.
But tracking oil futures isn't going to make you rich...
Money Morning Global Energy Strategist Dr. Kent Moors is your insider access to the energy markets.
Dr. Moors is a 35-year veteran of the energy markets, where he's advised some of the biggest players in the industry, from governments like the United States, Russia, China, and Iraq, to some of the biggest energy companies.
His contact list includes ambassadors, OPEC leaders, and global oil ministers.
On top of all that, he's won presidential citations from Nixon, Reagan, and Clinton for his service to the country.
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Members of Dr. Moors research services have taken that to the bank, like the 300% gain they've seen on a 2012 recommendation.
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Billionaires have been dumping oil stocks at a frantic pace.
Warren Buffett sold $3.7 billion worth of oil holdings, Bill Gates unloaded nearly $1 billion, and George Soros closed out multiple positions.
Dr. Moors believes it's connected with the new fuel that's part of Saudi Arabia's $100 billion energy spend.
Click here to find out more...
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