April 03, 2013 at 09:00 AM EDT
Head-To-Head: Oil Futures vs. Producers
When it comes to commodity investing, there is perhaps no corner of the market more popular than crude oil. Whether exposure is captured via futures or equities, this volatile yet often rewarding sector has become one of investors’ favorite tactical (and sometimes long-term) tools. And thanks to the ETF industry, there are now several ways investors can gain cheap and easy access to one of the most heavily-traded segments of the commodities market, through both equities and futures [see What Can You Buy With America's Daily Oil Consumption?]. While many choose to utilize an equity approach to oil–as this strategy avoids the nuances and complexities of futures trading–it is generally advised that investors keep a close eye on crude futures given producers’ dependence on the commodity’s price movements. A closer look at the relationship between oil futures and producers, however, reveals several factors investors should be mindful of. Big Oil Generates Big [...] Click here to read the original article on ETFdb.com. Related Posts: The Definitive Oil ETF Guide: List of Oil ETFs and More April ETF Data: Assets Set Record, EEM Strikes Back IndexIQ Debuts Global Oil Small Cap ETF (IOIL) Three Rock Solid Energy ETFs Finding The Right Oil ETF For A Crude Rally
When it comes to commodity investing, there is perhaps no corner of the market more popular than crude oil. Whether exposure is captured via futures or equities, this volatile yet often rewarding sector has become one of investors’ favorite tactical (and sometimes long-term) tools. And thanks to the ETF industry, there are now several ways investors can gain cheap and easy access to one of the most heavily-traded segments of the commodities market, through both equities and futures [see What Can You Buy With America's Daily Oil Consumption?]. While many choose to utilize an equity approach to oil–as this strategy avoids the nuances and complexities of futures trading–it is generally advised that investors keep a close eye on crude futures given producers’ dependence on the commodity’s price movements. A closer look at the relationship between oil futures and producers, however, reveals several factors investors should be mindful of. Big Oil Generates Big [...]

Click here to read the original article on ETFdb.com.

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