|Bid||21.71 x 4000|
|Ask||21.72 x 1800|
|Day's Range||21.24 - 21.77|
|52 Week Range||7.93 - 50.75|
|PE Ratio (TTM)||N/A|
|Beta (3Y Monthly)||0.00|
|Expense Ratio (net)||1.50%|
As the first quarter of 2019 has come to a close, these 10 ETFs and ETNs have led this investment category in gains for the first three months of this year. As you can see from the list, exchange traded products tied to the price of oil were among the top performers, as crude prices surged on production cuts.
Palladium has been staging record highs for the better part of the last seven months, outstripping even the most bullish forecasts made during 2018 as a supply squeeze inflated the metal’s price.
Given the clouds over the outlook for oil investment, investors should place their bet on oil ETFs cautiously or could take advantage of the quick turn in sentiment with the help of leveraged or inverse ETFs.
Leveraged exchange-traded oil funds are having an exceptional year on the back of rising oil prices, but these risky investments could be a big upset if and when oil trends downward.
Palladium prices skyrocketed to new record levels as strike jitters in South Africa added to a tense market engulfed by a sustained supply deficit.
Many investors have turned bullish on oil and are seeking to tap this opportunity. For them, a leveraged play on the commodity could be an excellent idea.
The South African economy received a boon last week from its largest trade partner, China, as authorities in Beijing promised to implement monetary and fiscal stimulus. In the U.S., despite the three-week funding deal announced last Friday, airlines were brought to the very edge by the longest government shutdown in history. FAANGs caught this week’s podium with earning releases while worries regarding the slowdown in global economic activity and uncertainties over Sino-U.S. relations took a toll on the U.S. dollar. Finally, investors took interest in leveraged bets on commodities as oil surged after U.S. slapped fresh sanctions on Venezuela. Check out our previous trends edition at Trending: Investors Turn to Dividend Aristocrats Amid Market Volatility.
Following the OPEC and non-OPEC ministerial meeting, the two parties reportedly agreed to cut oil production by a cumulative 1.2 million barrels per day – 0.8 million bpd by OPEC members and 0.4 million bpd by allied producers. Iran managed to secure an exemption from production cuts, citing the burden of U.S. sanctions it's already shouldering. Saudi Arabia, which wields the clout among OPEC members by virtue of it being the top oil producer in the cartel, initially opposed the proposal to exempt Iran.
Amid the renewed optimism, many investors have turned bullish on the energy sector and are seeking to tap this opportunity. For them, a leveraged play on energy or oil could be an excellent idea.
Thus far in 2018, adding higher oil prices to leveraged exchange-traded products (ETPs) has created a combination of combustible profits for traders. As such, leveraged oil plays have had bullish traders gushing as oil prices continued their ascent on the latest supply data from the U.S. Energy Department.
Indications that oil supply could be tightening have continued to send oil prices on their upward trajectory, which have benefitted leveraged exchanged-traded products tied to the commodity's price. Currently, the price of WTI Crude stands at $72 and Brent Crude at just under $82, but the idea of $100 oil prices have already entered into the realm of possibilities by the end of this year. Earlier this week, U.S. President Donald Trump prodded the Organization of the Petroleum Exporting Countries (OPEC) to ramp up production levels in order to temper oil prices ahead of mid-term Congressional elections.
Exchange-traded funds, or ETFs, have become a popular way to invest in assets. Investors should look at exchange-traded funds as a hybrid between individual stocks and a mutual fund. ETFs give investors the diversification found in mutual funds yet behave and trade like a single stock.
In the short term, the Organization of Petroleum-Exporting Countries (OPEC) has significant influence on the price of oil. Over the long term, its ability to influence the price of oil is quite limited, primarily because individual countries have different incentives than OPEC as a whole. For example, if OPEC countries are unsatisfied with the price of oil, it is in their interests to cut the supply of oil so prices rise.
A combination of increased supply and expectations that OPEC would eliminate cuts in oil output placed pressure on oil prices Wednesday, but a drop in U.S. crude stockpiles caused oil ETFs to start on the up side. As of 11:00 am Eastern Daylight Time, oil prices were up slightly at 0.11%. Oil ETFs responded on the positive side early in the market opening with United States Oil Fund (USO) up 0.36%, Invesco DB Oil Fund (DBO) up 0.19%, ProShares Ultra Bloomberg Crude Oil (UCO) up 0.88% and, VelocityShares 3x Long Crude Oil (UWT) up 1.19%. OPEC and non-OPEC oil producers like Russia started withholding output in 2017 in order to reduce a global supply, causing prices to rise 60 percent within the last year. Nonetheless, market analysts say the outlook for the oil market in the second half of 2018 is uncertain and OPEC is quick to point out the downside risks of global demand for oil.
The ultimate impact will depend on Russia and OPEC’s responses to rising prices and tightening supplies. The U.S. decision to pull out of the Iran nuclear deal has potentially profound implications for the oil market. While withdrawal from the Joint ...
Saudi Arabia has called off the IPO of its state-owned energy giant Aramco. What does this say about oil prices? Yahoo Finance's Seana Smith and Dion Rabouin discuss with Tamar Essner, Energy Director of Nasdaq Corporate Solutions.
Yahoo Finance's Jared Blikre joins Seana Smith from the floor of the New York Stock Exchange to discuss the latest market moves.
Yahoo Finance's Alexis Christoforous and Jared Blikre break down the latest market action. Here is the performance of S&P 500 energy sector stocks as of 11:15 am ET: ANDV Andeavor 1.79% APA Apache Corp -0.23% APC Anadarko Petro 0.44% BHGE Baker Hughes a GE Co Cl A -0.12% CHK Chesapeake Energy Corp 0.12% COG Cabot Oil & Gas Corp -1.76% COP ConocoPhillips 0.06% CVX Chevron Corp 0.02% CXO Concho Res Inc -0.67% DVN Devon Energy -0.32% EOG EOG Res -0.90% EQT Equitable Res -0.29% FTI TechnipFMC plc -0.48% HAL Halliburton Co -1.12% HES Hess Corp 0.61% HP Helmerich & Payne -0.30% MPC Marathon Petro Corp 1.96% MRO Marathon Oil Corp 0.24% NBL Noble Energy -0.03% NFX Newfield Exploration -0.11% NOV National Oilwell Varco Inc -0.44% OKE Oneok Inc 0.64% OXY Occidental Petro 0.10% PSX Phillips 66 1.98% PXD Pioneer Natural Res 0.40% RRC Range Res -0.10% SLB Schlumberger Ltd -1.07% VLO Valero Energy 1.95% WMB Williams Companies -0.07% XEC Cimarex Energy -0.03% XOM Exxon Mobil -0.37%
Jonathan Corpina, Senior Managing Partner at Meridian Equity Partners, joins Yahoo Finance's Seana Smith from the floor of the New York Stock Exchange to discuss the latest market moves.