Oil & Gas ETF: Review, Analysis & Details of Gasoline Oil Gas based ETF

The global rise in the demand of Gasoline or petrol is well known to all. The rise in demand is going to rise further and further. Although other sources of Alternative energy (see Alternative Energy Mutual Funds) have been identified, these alternate sources are still not that efficient, and the world is will continue to have its dependency on the surging crude oil prices.

Oil & Gas ETF: Oil & Gas Exchange Traded Funds

Right from the common man willing to fill oil in his car tank, to big corporations and governments, everyone is dependent on oil. One needs to know how to hedge against the oil prices and the simplest way to do that invest in investment products that track the prices of oil and gasoline. If we delve into the history of Oil prices (See Oil prices historical data chart), we'll observe that oil prices have been been fluctuating widely.
To prevent the effect of such highly volatile oil prices, the best way is to invest in oil prices based investment products which can act as a shield or hedge from the fluctuations in oil prices. Here, In this article, we provide a list of few Oil Based ETF or Exchange Traded Funds, which can be invested in or traded for benefitting from oil price fluctuations

1) iShares Dow Jones US Oil & Gas Exp.(ETF) IEO
The first among the Oil based ETF's stands the famous iShares Dow Jones US Oil & Gas ETF.
It attempts to track and has the Dow Jones U.S. Select Oil Exploration & Production Index the underlying index. This index is for oil exploration and manufacturing companies and includes the oil companies which are in the busines of exploration of oil as well as extraction, production, refining, and supply of oil and gas products.

2) United States Gasoline Fund UGA
The second on our list is United States Gasoline Fund which is trading on NYSE. The working of this Fund is a bit complex to understand, as this works on certain price differentials between the spot prices of the gasoline in NewYork market, versus the prices of the gasoline futures contracts being traded on NYMEX exchange. In essence, this fund works on generating returns based on the investing in futures Contracts and Other Oil-dependent investment products.

3)PowerShares DB Energy Fund ETF DBE
This ETF is from PowerShares and trades on NYSE. It tracks the Deutsche Bank Liquid Commodity Index - Optimum Yield Energy Excess Return Index.
If you are looking for investments in an ETF which has exposure to Energy Commodities, then this is the ETF for you. This PowerShares DB Energy Fund ETF invests in highly liquid energy based commodities like natural gas, sweet crude oil, heating oil, etc.
In a way, this is a good ETF for the energy sector.

4)Vanguard Energy ETF VDE
Another NYSE listed Energy based ETF, from the house of Vanguard. Being the front runners in the low cost fund categories, Vanguard has this energy sector specific ETF (See List of Low Cost Funds from Vanguard).
This ETF tracks the performance of MSCI US Investable Market Energy Index. The good thing about this ETF from Vanguard is that this covers all kinds of US based companies irrespective of their size. Also, the main criteria for inclusion in this scheme is also quite varied, giving a lot of variety to invest - companies in the business of oil rigs construction, to any kind of oil business - be it prodcution, manufacturing, refining, even transportation of oil and oil based products qualify for investment in this scheme.
So this ETF fro Vanguard, which is a trusted name in low cost fund management, offers investors another good option to explore for investments in Oil and Gasoline Based ETF Exchange Traded Funds