Yea, so I am a novice investor (college kid) and want to buy oil stocks/funds. Do any of you know any good sites with a listing of funds or do any of you have any recommendations?
There is USO, OIL, etc… look one up in google and it will show you similar sec’s. I’d appreciate anyone’s opinion on DXO- its a leveraged double long ETF… what are the risks beyond the obvious gain/loss on oil?? Volume seems to be somewhat low and its only been in existence 6 months. What is one getting themselves into with these levered ETF’s?
Could be subject to counterparty risk with the leveraged ETF if the provider utilizes swaps to get the exposure.
oih
akanska Wrote: ------------------------------------------------------- > There is USO, OIL, etc… look one up in google > and it will show you similar sec’s. > > I’d appreciate anyone’s opinion on DXO- its a > leveraged double long ETF… what are the risks > beyond the obvious gain/loss on oil?? Volume > seems to be somewhat low and its only been in > existence 6 months. What is one getting > themselves into with these levered ETF’s? Well, they’re meant to replicated 2X the daily return, not the return over time. Remember that -10% then +10% does not leave you even. This could leave you with a return significantly different that 2X the LT return.