Options for Leveraged Oil ETFs and ETNs

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

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

Oil ETFs make it easy access the oil sector as they give you instant access with one transaction. You don't have to stock up on oil barrels or fight oil index pricing, instead you can make one trade and have exposure (bullish or bearish) to the oil market.

And oil ETFs also come with many benefits as well, such as the potential cost savings on brokerage and transaction fees and the tax advantages, too.

So for those investors looking to add oil to your portfolio either as an upside opportunity or for diversification purposes or to hedge oil risk, I've compiled some oil ETF lists to help you with your research. I've already put together a full list of oil ETFs; however, I know some of the advanced traders would like to incorporate leveraged and inverse oil ETFs as well.

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

So that is every which way to trade oil ETFs and ETNs, but please be aware 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 please understand all negative factors just as much as the positive ones.

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