The Brent Crude oil price jumped nearly 6% to $101 as the U.S. began a blockade of the already blockaded Strait of Hormuz.
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The actions being carried out by Iran and now the U.S. in the Strait continue to put pressure on oil supply and raise concerns over the direction of the global economy.
Some analyst believe oil is heading even higher towards $150 if the disruption continues. Let’s look at two oil and gas ETFs set to keep benefiting from the turmoil. They come from our Best Oil, Gas and Consumable Fuels ETFs list.
MicroSectors Energy 3X Leveraged ETNs (WTIU)
The MicroSectors Energy 3X Leveraged ETNs offer investors a powerful tool to maximize their exposure to the dynamic energy sector, particularly within the Oil, Gas & Consumable Fuels niche. This exchange-traded note (ETN) is designed to deliver three times the daily performance of the Solactive MicroSectors Energy Index, making it an ideal choice for those with a bullish outlook on the energy market and a tolerance for higher volatility. WTIU is a leveraged product, amplifying both potential returns and risks, and is best suited for sophisticated investors looking to capitalize on short-term movements in the energy sector.
It has $26.83 million of assets under management and is up 83% in the year-to-date.
Invesco Dynamic Energy Exploration & Production ETF (PXE)
It is a specialized investment vehicle that offers focused exposure to the energy sector, specifically targeting the oil, gas, and consumable fuels niche. This ETF is designed for investors seeking to capitalize on the dynamic and often volatile landscape of energy exploration and production. With a carefully curated portfolio that includes companies at the forefront of energy extraction and innovation, PXE provides a strategic opportunity to invest in the essential resources that fuel our world. The fund leverages a smart, dynamic approach to select stocks that demonstrate strong fundamentals and growth potential, ensuring that investors are positioned to benefit from both traditional and emerging trends within the energy market.
It has 32 holdings including Marathon Petroleum (MPC) and is up 31% in the year-to-date.
