Hello everyone! Today I’m going to talk about how to invest in oil through an ETF. In this article you will find the right ETF and why it’s a relevant investment at the moment.
As per usual, this is not financial advice. If you’re unsure about anything, it’s worth seeking advice from a regulated financial advisor.
This article is for anyone completely new to investing in oil ETF and here are the key points:
- Oil price is at lowest price since April 2021
- Global trade to slowdown after announcement of US president’s tarriff programme.
- OPEC members announced plans to increase production by 440,000 barrels a day.
For someone completely new to economics and financial data, it’s not easy to grasp technical terms. For this reason, I’ll try to keep this post as simple as possible.
After a number of events, oil price went down as much as 16% in just a couple of days. It appears obvious that it will go up again in the medium long term. The below ETF becomes relevant in this scenario:
- Xtrackers MSCI World Energy ETF 1C
- ISIN: IE00BM67HM91
- Size: 1.002M$
- Exchange place: London, Francfort, Zurich, Milan
- 1 year, 3 year and 5 year performance: -7.6%, +22.4% and +173.6%
It’s worth noticing that this ETF is not invested in oil only. It takes the overall energy sector, including gold and commodities.
I hope you enjoyed reading this article. Feel free to reach out in case something needs to be discussed further.
Cheers!
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