Oil Inverse ETF Funds
Investors interested in shorting oil can investment in various inverse oil ETFs, which will perform opposite to the actual Oil index. Many investors will even hedge with investments by purchasing an inverse oil etf to lock in profits. The below are the most active inverse oil etfs available to investors. These inverse ETFs will short crude oil, so if your interested in shorting oil, but donít want to purchase options or short actual oil futures contracts then you have another option through buying an inverse ETF oil fund. Investors donít need the investment capital level that they would if they were to outright short oil futures and they can sell their positions at any time.
United States Short Oil ETF - DNO
This fund shorts US crude oil futures in order to inversely track the price of crude oil. DNO was created by United States Commodity Futures and trades on the NYSE Arca Exchange.
The portfolio takes short positions in crude oil interests to the fullest extent possible without being leveraged or unable to satisfy its current or potential margin or collateral obligations. These investments will be collateralized by cash, cash equivalents and US government obligations with remaining maturities of two years or less.
This fund will invest in NY Mercantile Exchange Oil Future Contracts
ProShares Short Oil and Gas ETF
This fund tracks the daily performance of the Dow Jones AIG Crude Oil Sub-Index. The ETF invests in derivatives, such as futures and swaps to achieve its goal, but also utilizes other money market assets as well. This Short ProShares ETF seeks a return that is -1x the return of an index for a single day,
ProShares UltraShort DJ-UBS Crude Oil Inverse ETF Fund - SCO
This fund tracks 2x the daily performance of the Dow Jones AIG Crude Oil Sub-Index. The Dow Jones UBS WTI Crude Oil Subindex (a sub-index of DJ-UBS Commodity Index) is intended to reflect the crude oil segment of the commodities market. The Index consists of futures contracts on crude oil only. The Dow Jones-UBS Commodity Index is valued using the settlement prices for the underlying futures contracts. The DJ-UBSCI rolls its contracts over the course of 5 consecutive business days, starting on the 6th business day of the month. Each day, 20% of each futures position that is included in the monthís roll is rolled.
ProShares UltraShort Oil and Gas Inverse ETF - DUG
This inverse fund tracks the price of Oil by correlating with the Dow Jones U.S. Oil & Gas Index. Acting as a leveraged fund, it seeks twice the daily performance of the underlying index. The Dow Jones U.S. Oil & Gas Index measures the performance of the energy sector of the U.S. equity market. Component companies include oil drilling equipment and services, coal, oil companies-major, oil companies-secondary, pipelines, liquid, solid or gaseous fossil fuel producers and service companies. This inverse fund will short in other oil related investments besides Oil Futures Contracts.
HBP NYMEX Crude Oil Inverse ETF - HIO
The Horizons BetaPro NYMEX Crude Oil Inverse ETF seeks daily investment results that correspond to 1x the inverse of the daily performance of the NYMEX light sweet crude oil futures contract for the next delivery month.