Options for Leveraged Oil ETFs and ETNs

Oil ETFs and ETNS—What You Should Know

Close-up of an oil platform at sea
Danial_Abdullah / Getty Images

Oil ETFs are one of the most popular types of commodity ETFs on the market. Gold ETFs are also a popular choice, but there's no doubt that oil funds definitely get a lot of play. If you're looking to invest in oil, exchange traded products may be the way to go.

Oil ETFs make it easy access the oil sector because they give you instant access with one transaction. You don't have to stock up on oil barrels or fight oil index pricing.

You can instead make one trade and have exposure, either bullish or bearish, to the oil market. And oil ETFs also come with many other benefits as well, such as the potential cost savings on brokerage and transaction fees and some tax advantages as well. 

If you're looking to add oil to your portfolio, either as an upside opportunity, for diversification purposes or to hedge oil risk, here's a list of some leveraged and inverse oil ETF to help with your research. 

List of Leveraged Oil ETFs (2X and 3X)

  • UCO - Pro Shares Ultra DJ-AIG Crude Oil ETF
  • SCO - Pro Shares Ultra Short DJ-AIG Crude Oil ETF
  • DTO - Power Shares DB Crude Oil Double Short ETN
  • DUG - Ultra Short Oil & Gas Pro Shares ETF
  • FOL - Factor Shares 2X Oil Bull S&P 500 Bear ETF
  • DRIP - Direxion Daily S&P Oil & Gas Exploration & Production Bear 3X Shares ETF
  • SOP - ProShares UltraShort Oil & Gas Exploration & Production ETF
  • UOP - ProShares Ultra Oil & Gas Exploration & Production ETF

    But wait, there's more. I've also compiled the short oil ETF list as well.

    List of Inverse Oil ETFs

    • DDG - Short Oil & Gas Pro Shares ETF
    • DNO - US Short Oil Fund
    • DUG - Ultra Short Oil & Gas Pro Shares ETF
    • SCO - Ultra Short DJ-UBS Crude Oil Pro Shares ETF
    • DTO - Power Shares DB Crude Oil Double Short ETN
    • SZO - Power Shares DB Crude Oil Short ETN
    • DRIP - Direxion Daily S&P Oil & Gas Exploration & Production Bear 3X Shares ETF
    • GUSH - Direxion Daily S&P Oil & Gas Exploration & Production Bull 3X Shares ETF
    • SOP - ProShares UltraShort Oil & Gas Exploration & Production ETF

    And for those who want leveraged and short oil funds...

    List of Leveraged and Inverse Oil ETFs

    • DUG - Ultra Short Oil & Gas Pro Shares ETF
    • SCO - Ultra Short DJ-UBS Crude Oil Pro Shares ETF
    • DTO - Power Shares DB Crude Oil Double Short ETN
    • DRIP - Direxion Daily S&P Oil & Gas Exploration & Production Bear 3X Shares ETF
    • SOP - ProShares UltraShort Oil & Gas Exploration & Production ETF

    A Word of Caution

    Keep in mind that utilizing leveraged and inverse oil ETFs or ETNs in your portfolio is a very advanced investing strategy. These funds have more risk than a normal exchange traded product, so make sure you understand all negative factors before you make a move. Don't just focus on the positive aspects. 

    Not only should you research each individual leveraged or inverse oil fund on this list before you make any trades, but you should also thoroughly research leveraged and inverse ETFs in general. Understand how they work, what is in the funds—such as derivatives—how they react to different market conditions, and their potential risks and impact on your portfolio.

    And be sure to consult a financial professional such as an advisor or your broker if you have any questions about any of these oil products. When you've conducted your due diligence and made your investing decisions, good luck with all your trades.

    Disclaimer: At the time of publication of this article, I do not have any open positions in and of the above oil exchange traded funds or notes.