The price of Brent crude oil edged higher today, despite hopes of an end to the Iran war. Brent crude was up 0.33% at $96.84 in mid-trading.
Claim 55% Off TipRanks
- Unlock hedge fund-level data and powerful investing tools for smarter, sharper decisions
- Discover top-performing stock ideas and upgrade to a portfolio of market leaders with Smart Investor Picks
The oil price has gushed higher since the start of the conflict between the U.S., Israel and Iran, but hopes that peace talks might restart cooled investors’ hopes today.
Let’s look at two oil and gas ETFs from our Best Oil, Gas and Consumable Fuels ETFs list, which could continue to benefit.
ProShares UltraShort Oil & Gas (DUG)
DUG offers investors an opportunity to capitalize on the inverse performance of the oil and gas sector. By employing a leveraged strategy, DUG seeks to deliver twice the inverse daily performance of the Dow Jones U.S. Oil & Gas Index, making it an ideal choice for sophisticated investors aiming to navigate market downturns or enhance their portfolio’s exposure to energy sector dynamics. With its focus on shorting the oil and gas market, this ETF not only serves as a potential hedge against rising energy costs but also offers the possibility of significant returns during periods of negative sentiment or declining prices in the oil and gas markets.
It has $17.38 million of Assets under Management and is down 40% in the year-to-date. However, it could be set to take advantage of falling prices.
First Trust Natural Gas ETF (FCG)
It allows investors to gain targeted exposure to the natural gas industry, a critical component of the global energy market known for its cleaner-burning characteristics compared to other fossil fuels. As the world transitions towards more sustainable energy sources, natural gas serves as a crucial bridge fuel, making the First Trust Natural Gas ETF a strategic choice for those looking to invest in the evolving energy landscape. With its diversified portfolio of companies engaged in the exploration, production, and distribution of natural gas, FCG offers a comprehensive approach to capitalizing on sector-specific trends and potential market growth.
It has $755.81 million of Assets under Management and is up 28% in the year-to-date. It has 42 holdings including Conocophillips (COP).