How to invest in oil: the right ETF for your portfolio

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…

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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