Best ETF to short oil?

Discussion in 'ETFs' started by cgtrader, Jan 18, 2008.

  1. I've been googling but a can't find a true Inverse ETF on Oil?
     
  2. wake37

    wake37

    Try dig and dug. Great way to play oil.
     
  3. Cheers wake but do you have any quick explanation to why DIG would be down when oil is down?

    I'm reading through the holdings as we speak.
     
  4. Wow stupid question I thought they were both Inverse.
     
  5. you got it

    dug- oil down
     
  6. OIH
    The the best ETF to short oil
     
  7. You are sadly mistaken.
    OIH is not a very accurate "proxy" for shorting crude oil. The OIH is an oil-service index.

    83% of the components are:

    BHI
    CAM
    DO
    HAL
    NOV
    NE
    SLB
    SII
    RIG
    WFT
     
  8. USO is the best pure oil ETF.

    OIH is like a combination of oil and the general stockmarket. If both go up it can do even better. If oil is up but the S&P is down a lot, the OIH may be unchanged or even down.
     
  9. 2mnytrdz

    2mnytrdz

    USO. Thank you. I've been looking for something like this. I've been just trading OIH. You are right. USO follows oil much better.
     
  10. vikasd

    vikasd

    If you want to short oil, aren't you just better off buying XOM? They make more money when the inputs are cheaper. Valero and Tesoro are other pure play refiners.
     
    #10     Jan 20, 2008