Here’s How Investors Can Strike Black Gold With These 5 Oil ETFs
Here are five oil ETFs for investors looking to profit during a bear market.
With the broad market in free fall and set to enter a new bear market, oil has been a standout sector, which has continued to deliver investors with big gains.
Thanks to Russia’s economy being overly reliant on fossil fuels, the war in Ukraine and the subsequent hit to Russia’s oil exports, oil has been one of the few asset classes that have benefited from the war. With Russia’s spigot turned off, for now, Europe and the rest of the region will need to get their oil from elsewhere.
For those not interested in betting on individual oil stocks, oil ETFs allow investors to profit from the rapidly rising price of oil. Owning an oil ETF could also be a way to hedge against the very expensive cost of filling your tank with gas every week.
Below are five ETFs that investors should consider adding to their portfolios in 2022.
1. United States Brent Oil Fund (BNO)
Offering investors exposure to the spot price of Brent crude oil, the United States Brent Oil Fund (NYSEArca: BNO) primarily invests in crude oil futures contracts and other oil-related contracts. The fund has $316.1 million in assets under management (AUM), a 1.02% annual fee, and a healthy 1.4 million shares traded daily.
The United States Brent Fund last traded at $35.74 per share, up 0.34% on the day. YTD, BNO ETF is up 68.9%.
2. Invesco DB Oil Fund (DBO)
The Invesco DB Oil Fund (NYSEArca: DBO) is tied to crude oil through WTI futures contracts. The fund tracks the DBIQ Optimum Yield Crude Oil Index Excess Return, an index composed of WTI futures contracts. The fund has $540.2 million AUM, an annual fee of 0.77% and an average daily trading volume of 1.1 million shares.
The Invesco DB Oil Fund last traded at $20.66 per share, up 0.05% on the day. YTD, DBO ETF is up 50.36%.
3. iPath Pure Beta Crude Oil ETN (OIL)
Providing exposure to the Barclays WTI Crude Oil Pure Beta TR Index, iPath Pure Beta Crude Oil ETN (NYSEArca: OIL) is perhaps the most direct access to investing in WTI via an ETF. They have $139.7 million AUM, charge a relatively low annual fee of 0.57, and only trade 75,000 shares daily.
The iPath Pure Beta Crude Oil ETN last traded at $38.46 per share, down 0.62% on the day. YTD, OIL ENT is up 62.55%.
4. United States 12 Month Oil Fund (USL)
More focused than the other funds on this list, the United States 12 Month Oil Fund (NYSEArca: USL) is tied to the price of West Texas Intermediate’s light, sweet crude oil. The contracts they invest in are restricted to those with 12 months or less to expire. The fund has $143.7 AUM, an expense ratio of 0.8% and the lowest liquidity on this list, with only 48,000 shares traded per day.
The United States 12 Month Oil Fund last traded at $44.61 per share, up 0.2% on the day. YTD, USL ETF is up 58.14%.
5. United States Oil Fund (USO)
By far the largest fund on this list, the United States Oil Fund (NYSEArca: USO) is the largest oil-focused ETF on the market. It is tied to the Benchmark Oil Futures Contract, which is the contract due to expire next. USO has $2.9 billion AUM, a yearly fee of 0.81% and strong liquidity of 5,000 shares traded daily.
The United States Oil Fund last traded at $89.71 per share, down 0.47% on the day. YTD, the USO ETF is up 63.61%.
Small Cap News Movers & Winner Deep Dive – By WealthyVC.com
We scan over 10,000 publicly listed stocks across all seven North American exchanges to uncover the market-moving news that actually matters—focusing on high-quality, liquid, growth-oriented companies in sectors attracting serious capital, like AI, blockchain, biotech, and consumer tech.
Each week, we publish Small Cap News Movers, a curated roundup of small and micro-cap stocks surging on meaningful catalysts. We break down what’s driving the move, tap into rumors swirling on social media, and surface sharp insights from both industry experts and retail sleuths.
From this list, we select one standout stock for our Small Cap Winner Deep Dive, released the next day, where we take a closer look at the fundamentals, narrative, and technicals that suggest this winner could keep running.
Powered by our proprietary 4-element, AI-driven analysis system, our goal is simple: cut through the noise, remove the emotion, and help investors dominate the small-cap market with momentum-driven strategies—completely free.
Sign up for email alerts to get the moves before our social media followers.
Read Next: Why Nvidia’s Tech Investments Could Transform the Entire AI Innovation Ecosystem
Join the Discussion in the WVC Facebook Investor Group
Do you have a stock tip or news story suggestion? Please email us at: invest@wealthyvc.com.
Disclaimer: Wealthy VC does not hold a position in any of the stocks, ETFs or cryptocurrencies mentioned in this article.
