Energy ETFs offer an attractive opportunity to investors with a long term horizon since they represent a stable industry with a bright future. The demand for energy continues to rise steadily and this is particularly true of nations growing at a rapid pace. Along with this trend, the pressure on natural resources which are harnessed to provide energy and related services has also increased considerably. With the advantage of well diversified portfolios Energy ETFs are the most viable route to invest in this sector.
| Mutual Fund | Ticker |
| Ultra DJ- UBS Crude OIL |
UCO |
| Direxion Daily Energy Bull 3X | ERX |
| Direxion Daily Natural Gas Bull 2x | GASL |
Ultra DJ- UBS Crude Oil – seeks to replicate the 2X the return of the daily performance of the Dow Jones US Crude Oil Subindex. This ETF has a category average annual expense ratio of 0.95%, and net asset of $1.15 billion. The largest holding of this ETF is the WTI October 2011 Futures Contract.
Direxion Daily Energy Bull 3X – seeks daily investment results, before fees and expenses, of 300% of the price performance of the Russell 1000 Energy Index. This ETF has an average expense ratio of 0.95%, and has net assets of $354 million. This ETFs largest holding is Exxon Mobil.
Direxion Daily Natural Gas Bull 2X – tracks the daily performance of the 300% of the price performance of the ISE-REVERE Natural Gas Index. This ETF has a 0.95% annual expense ratio and has net assets of $11.3 million.
