What is the best avenue to invest in energy?
Answers
103 points
shantanushee answered 4 months ago …
VDE (Vanguard Energy ETF) is one way. It has low expense ratio (0.20%), but not sure whether it is the best.
Read more from shantanushee2082 points
alanj answered 4 months ago …
I would use ETF's. Be cautious when using margined ETF's. That is, those that offer 200% and 300% of the underlying index. Margined ETF's are for short term to intermediate trading not buy and hold long term trading. XLE is a popular ETF, and it's not margined.
For more research click on the following link.
http://www.google.com/search?rlz=1C1GGLS_enUS322US322&aq=f&sourcei d=chrome&ie=UTF-8&q=energy+etf
153 points
JSIMMER answered 3 months ago …
I wouldn't go with ETF as it is not your best bang for you buck. Sure the ETF's have great exposure and more diversification they also have their limits.
I don't know what your strategy is however if you were to go long I would go with SU or APC or CCJ. SU is more of a oilsands play while APC is more of a Nat Gas play with exposure to oil. Cameco is a Canadian Uranium play. I recommend these due to a higher beta (volatility) and more upside potential.
If your are bearish I would short the oil services stocks such as RIG or SLB.
