These energy funds are sorted by investment type. This is helpful for advanced ETF investors who like to utilize inverse and leveraged exchange-traded funds and notes. These types are:
Leveraged energy ETFsInverse energy ETFsEnergy funds that are both leveraged and inverse
Keep in mind that which ETFs and exchange-traded notes (ETNs) can be traded might change by the day. Here’s a place to start exploring the types of this asset class.
Leveraged Energy ETFs
DIG: ProShares Ultra Oil and Gas ETF (2x) ERX: Direxion Daily Energy Bull and Bear 2x Shares ETF (2x) GUSH: Direxion Daily S&P Oil & Gas Exploration & Production Bull and Bear 2x Shares ETF (2x)
Leveraged and Inverse Energy ETFs
DRIP: Direxion Daily S&P Oil & Gas Exploration & Production Bull and Bear 2x Shares ETF (-2x) DUG: UltraShort Oil & Gas Pro Shares ETF (-2x) ERY: Direxion Daily Energy Bull and Bear 2x Shares ETF (-2x) KOLD: UltraShort Bloomberg Natural Gas ETF (-2x) SCO: Pro Shares UltraShort Bloomberg Crude Oil ETF (-2x)
What to Know About Leveraged and Inverse ETFs
Trading leveraged and inverse funds is not for new investors. There are a lot of risks involved. These types of funds also can act very differently than other funds. Because of this, they can be controversial among advanced investors. This doesn’t mean you have to avoid them. It just means you need to be informed before you invest. You’ll want to:
Spend time learning about the funds on this list if you’re considering any of them.Look deeper into how leveraged and inverse ETFs work.Watch how they react to different market conditions.Know how they react to their benchmarks.Get an idea of how they can impact your portfolio.
Be sure to talk with a financial professional, such as an advisor or your broker, if you have any questions.