Buying shares of crude oil ETFs or ETNs will expose your portfolio to the energy sector of the economy. This could be good or bad depending on your investment preferences. In this article, I will discuss crude oil, crude oil ETFs, crude oil ETNs, the pros and cons of ownership, and the top 51 crude oil ETFs and ETNs.

What is Crude Oil?

This video does a good job of giving you the basics for crude oil so take a minute to watch it.

Crude oil gets processed into many products we use everyday. Here’s a list of some of those products: gasoline, heating oil, diesel fuel, jet fuel, propane, residual fuel oil, asphalt, clothing, toys, furniture, insulation, cars and fertilizer.

Crude oil is widely used. Because of that, investors want to add crude oil to their investment portfolio.

Crude oil ETFs and ETNs are two ways to invest.

What are Crude Oil ETFs?

Before you can understand crude oil ETFs, you need to understand ETFs. ETF stands for Exchange Traded Fund. This video does a great job of explaining ETFs:

ETFs buy several different stocks and you buy shares of the ETF. This spreads your money over several stocks and reduces your transaction costs.

So crude oil ETFs invest in stocks, options, future contracts or forward contracts that focus on crude oil in some way. For example, the Energy Select Sector SPDR ETF mimics the Energy Select Sector Index and holds stocks like Exxon Mobile, Chevron, ConocoPhillips and Phillips 66.

Individual crude oil ETFs pursues different goals and holds different investments. Make sure you understand the ETF before you invest.

What is a Crude Oil ETN?

ETN stands for Exchange Traded Note. This video does a great job of explaining ETNs.

So what are crude oil ETNs? Like crude oil ETFs, crude oil ETNs invest in stocks, options, future contracts or forward contracts that focus on crude oil in some way. For example, the VelocityShares 3x Long Crude Oil ETN buys the West Texas Intermediate Crude Oil futures contract.

However, the ETNs are debt instruments issued by a bank. ETNs have a maturity date and get backed only by the credit of the issuing bank.

Should you invest in Crude Oil ETFs or Crude Oil ETNs?

This is a loaded question and ultimately one that only you can answer. But I can give you some things to consider.

  1. For better or worse, crude oil ETFs and ETNs mimic the price of crude oil. Crude oil prices fluctuate quite a bit so you need to get prepared for major swings.
  2. For the foreseeable future, people will need crude oil every day.
  3. The price of crude oil is very political. If crude oil prices get too high or too low, powerful parties will step in and try to regulate those prices.

Top 51 Crude Oil ETFs and ETNs

This is a list of the top 51 crude oil ETFs and crude oil ETNs included in Finance Footing’s Free Crude Oil Report. It gives a brief outline of what each fund does.

1. Credit Suisse X-Links Crude Oil Shares Covered Call ETN

Ticker Symbol: USOI

The Credit Suisse X-Links Crude Oil Shares Covered Call ETN uses a covered call strategy.

Like many other crude oil ETFs, it buys front-month West Texas Intermediate Crude Oil futures contracts sell calls.

The calls sold have a strike price 6% above the price of the front-month West Texas Intermediate Crude Oil futures contracts.

This crude oil ETN mimics the return of the Credit Suisse Nasdaq WTI Crude Oil FLOWSTM 106 Index.

The Credit Suisse Nasdaq WTI Crude Oil FLOWSTM 106 Index tracks the return of the covered call strategy on shares of the United States Oil Fund.

2. ETRACS S&P GSCI Crude Oil Total Return ETN

Ticker Symbol: OILX

The ETRACS S&P GSCI Crude Oil Total Return ETN buys front-month West Texas Intermediate Crude Oil futures contracts.

When the futures contracts near expiration, the ETN sells its current holdings. Then it buys the next front-month West Texas Intermediate Crude Oil futures contract.

This crude oil ETN mimics the return of the S&P GSCI Crude Oil Total Return Index.

The S&P GSCI Crude Oil Total Return Index is a sub-index of the S&P GSCI commodity index. It tracks the return of the front-month West Texas Intermediate Crude Oil futures contracts.

3. iPath Series B S&P GSCI Crude Oil ETN

Ticker Symbol: OILB

The iPath Series B S&P GSCI Crude Oil ETN buys front-month West Texas Intermediate Crude Oil futures contracts.

When the futures contracts near expiration, the ETN sells its current holdings. Then it buys the next front-month West Texas Intermediate Crude Oil futures contract.

This crude oil ETN mimics the return of the S&P GSCI Crude Oil Total Return Index.

The S&P GSCI Crude Oil Total Return Index is a sub-index of the S&P GSCI commodity index. It tracks the return of the front-month West Texas Intermediate Crude Oil futures contracts.

4. ProShares K-1 Free Crude Oil Strategy ETF

Ticker Symbol: OILK

The ProShares K-1 Free Crude Oil Strategy ETF buys West Texas Intermediate Crude Oil futures contracts.

It selects futures contracts with different expiration dates.

Unlike many other crude oil ETFs, this ETF can buy West Texas Intermediate Crude Oil futures contract with 3 months or less until delivery.

ProShares K-1 Free Crude Oil Strategy ETF seeks to outperform index based strategies. It achieves this goal by managing how it rolls West Texas Intermediate Crude Oil futures contracts.

5. United States Gasoline

Ticker Symbol: UGA

The United States Gasoline fund buys front-month RBOB Gasoline futures contracts.

If the futures contract expires within 2 weeks, the United States Gasoline fund buys next month’s futures contract.

This crude oil ETF seeks to mimic the daily changes in the spot price of gasoline.

The United States Gasoline ETF primarily invests in futures contracts for RBOB Gasoline. But it will also invest in the following futures contracts:

1) Crude Oil
2) Diesel-Heating Oil
3) Natural Gas
4) Other Petroleum-Based Fuels

6. United States Diesel-Heating Oil

Ticker Symbol: UHN

The United States Diesel-Heating Oil ETF buys front-month heating oil futures contracts.

If the futures contract expires within 2 weeks, the United States Diesel-Heating Oil fund buys next month’s futures contract.

This crude oil ETF seeks to mimic the daily changes in the spot price of heating oil.

The United States Diesel-Heating Oil ETF primarily invests in futures contracts for Diesel-Heating Oil. But it will also invest in the following futures contracts:

1) Crude Oil
2) RBOB Gasoline
3) Natural Gas
4) Other Petroleum-Based Fuels

7. PowerShares DB Energy ETF

Ticker Symbol: DBE

The PowerShares DB Energy ETF buys the following futures contracts:

1) West Texas Intermediate Crude Oil
2) Heating Oil
3) Brent Crude Oil
4) RBOB Gasoline
5) Natural Gas

This crude oil ETF selects futures contracts to achieve 3 goals.

1) Maximize liquidity.
2) Maximize roll yield.
3) Reduce contango.

The PowerShares DB Energy ETF mimics the return of the DBIQ Optimum Yield Energy Index Excess Return.

The DBIQ Optimum Yield Energy Index Excess Return tracks the return of the energy sector.

8. Horizons Crude Oil ETF

Ticker Symbol: HUC.TO

The Horizons Crude Oil ETF buys West Texas Intermediate Crude Oil futures contracts.

These futures contract have next December as an expiration date.

This crude oil ETF trades in Canadian dollars.

Any gains or loses in U.S. dollars will get converted back to Canadian Dollars.

9. UBS ETRACS CMCI Energy Total Return ETN

Ticker Symbol: UBN

The UBS ETRACS CMCI Energy Total Return ETN buys the following futures contracts:

1) Brent Crude Oil
2) West Texas Intermediate Crude Oil
3) RBOB Gasoline
4) Gas Oil
5) Natural Gas

This crude oil ETN buys futures contracts with different expiration dates.

This helps limit the impact of contango on its portfolio.

The UBS ETRACS CMCI Energy Total Return ETN mimics the return of the UBS Bloomberg CMCI Energy Total Return Index.

The UBS Bloomberg CMCI Energy Total Return Index tracks the performance of a basket of energy futures contracts.

These futures contracts tracked by the index include:

1) Brent Crude Oil
2) West Texas Intermediate Crude Oil
3) RBOB Gasoline
4) Gas Oil
5) Natural Gas
6) Heating Oil

10. United States 12 Month Oil

Ticker Symbol: USL

The United States 12 Month Oil fund buys West Texas Intermediate Crude Oil futures contracts.

This crude oil ETF buy futures contracts with expiration dates in the next 12 months.

The United States 12 Month Oil fund mimics the price changes of the spot price of crude oil.

This ETF focuses on West Texas Intermediate Crude Oil futures contracts. But it will also buy the following futures contracts:

1) Diesel-Heating Oil
2) RBOB Gasoline
3) Natural Gas
4) Other Petroleum-Based Fuels

11. United States Brent Oil

Ticker Symbol: BNO

The United States Brent Oil Fund buys front-month Brent Crude Oil futures contracts.

If the futures contract expires within 2 weeks, this crude oil ETF sells its current Brent Crude Oil futures contracts.

Then it buys the next front-month Brent Crude Oil futures contract.

The United States Brent Oil Fund mimics the daily price changes of the spot price of Brent Crude Oil.

12. ELEMENTS Rogers International Commodity Energy Total Return ETN

Ticker Symbol: RJN

The ELEMENTS Rogers International Commodity Energy Total Return ETN buys front-month futures contracts.

This crude oil ETN holds the following futures contracts:

1) West Texas Intermediate Crude Oil
2) Brent Crude Oil
3) Natural Gas
4) RBOB Gasoline
5) Heating Oil

This ETN mimics the return of the Rogers International Commodity Index – Energy Total Return Index.

This index tracks the performance of the following futures contracts:

1) West Texas Intermediate Crude Oil
2) Brent Crude Oil
3) Natural Gas
4) RBOB Gasoline
5) Heating Oil
6) Gas Oil

13. iPath Pure Beta Energy ETN

Ticker Symbol: ONG

The iPath Pure Beta Energy ETN buys 6 different futures contracts in the energy sector.

These futures contracts include:

1) West Texas Intermediate Crude Oil
2) Brent Crude Oil
3) Gas Oil
4) RBOB Gasoline
5) Heating Oil
6) Natural Gas

This crude oil ETN chooses futures contract expiration dates to mitigate contango.

The iPath Pure Beta Energy ETN mimics the return of the Barclays Commodity Index Energy Pure Beta Total Return.

This index is a sub-index of the Barclays Commodity Index Pure Beta Total Return.

The iPath Pure Beta Energy ETN tracks the unleveraged performance of these 6 energy futures contracts:

1) West Texas Intermediate Crude Oil
2) Brent Crude Oil
3) Gas Oil
4) RBOB Gasoline
5) Heating Oil
6) Natural Gas

14. PowerShares DB Oil ETF

Ticker Symbol: DBO

The PowerShares DB Oil ETF buys West Texas Intermediate Crude Oil futures contracts.

This crude oil ETF selects futures contracts with different expiration dates to reduce contango.

The PowerShares DB Oil ETF mimics the return of the DBIQ Optimum Yield Crude Oil Index Excess Return.

This index tracks the return of the West Texas Intermediate Crude Oil futures contract.

15. iPath Pure Beta Crude Oil ETN

Ticker Symbol: OLEM

The iPath Pure Beta Crude Oil ETN buys West Texas Intermediate Crude Oil futures contracts.

This crude oil ETN selects contract expiration dates that help reduce contango.

The iPath Pure Beta Crude Oil ETN mimics the return of the Barclays WTI Crude Oil Pure Beta Total Return Index.

This index tracks the performance of West Texas Intermediate Crude Oil futures contracts.

This index uses futures contracts with 1 to 2 different delivery dates.

16. DB Crude Oil Long ETN

Ticker Symbol: OLO

The DB Crude Oil Long ETN buys West Texas Intermediate futures contracts.

The DB Crude Oil Long ETN selects contract expiration dates over the next 13 months that give you the best yield.

This crude oil ETN mimics the performance of the Deutsche Bank Liquid Commodity Index – Optimum Yield Oil Excess Return.

The Deutsche Bank Liquid Commodity Index – Optimum Yield Oil Excess Return reflects the return of crude oil.

The index tracks the performance of West Texas Intermediate futures contracts.

17. United States Oil

Ticker Symbol: USO

The United States Oil Fund buys front-month West Texas Intermediate futures contracts.

As a futures contract nears expiration, this crude oil ETF rolls into the next front-month future contracts.

United States Oil is one the largest and most liquid crude oil ETFs available.

This crude oil ETF mimics the changes in the spot price of West Texas Intermediate crude oil.

18. iPath Bloomberg Energy Total Return Sub-Index ETN

Ticker Symbol: JJE

The iPath Bloomberg Energy Total Return Sub-Index ETN invests in the following futures contracts:

1) Natural Gas
2) Brent Crude Oil
3) West Texas Intermediate Crude Oil
4) Unleaded Gasoline
5) Heating Oil

This crude oil ETN holds every other month of delivery for these five futures contracts and it rolls contracts every other month.

This ETN buys each futures contract within 2 months from expiration and holds it until just before expiration.

The iPath Bloomberg Energy Total Return Sub-Index ETN mimics the return of the Dow Jones-UBS Energy Subindex Total Return.

The Dow Jones-UBS Energy Subindex Total Return tracks the prices of these four futures contracts:

1) Crude Oil
2) Heating Oil
3) Natural Gas
4) Gasoline

19. iPath S&P GSCI Crude Oil Total Return ETN

Ticker Symbol: OIL

The iPath S&P GSCI Crude Oil Total Return ETN buys the front-month West Texas Intermediate Crude Oil futures contract.

This crude oil ETN rolls expiring contracts into the next front-month futures contract.

The iPath S&P GSCI Crude Oil Total Return ETN mimics the return of the S&P GSCI® Crude Oil Total Return Index.

The S&P GSCI® Crude Oil Total Return Index tracks the performance of the West Texas Intermediate crude oil futures contract.

20. iPath Bloomberg Natural Gas Subindex Total Return ETN

Ticker Symbol: GAZ

The iPath Bloomberg Natural Gas Subindex Total Return ETN buys the second-month natural gas futures contract.

This ETN rolls natural gas futures contracts every other month.

This ETN mimics the return of the Dow Jones-UBS Natural Gas Subindex Total Return Index.

The Dow Jones-UBS Natural Gas Subindex Total Return Index tracks the return of the Henry Hub Natural Gas futures contract.

21. Alerian MLP ETF

Ticker Symbol: AMLP

The Alerian MLP ETF buys energy infrastructure master limited partnerships.

This crude oil ETF mimics the performance of the Alerian MLP Infrastructure Index.

The Alerian MLP Infrastructure Index invests in limited partnerships.

These limited partnerships their income from transportation, storage and processing of energy commodities.

22. VanEck Vectors Oil Refiners ETF

Ticker Symbol: CRAK

The VanEck Vectors Oil Refiners ETF buys global stocks of companies that earn at least 50% of their revenue from crude oil.

The VanEck Vectors Oil Refiners ETF uses a weighted-average based on the size of the company to determine investment size.

Individual investments can’t exceed 8% of total assets for VanEck Vectors Oil Refiners ETF.

This crude oil ETF mimics the return of the MVIS Global Oil Refiners Index.

The VanEck Vectors Oil Refiners ETF invests at least 80% of its total assets in companies that make up the MVIS Global Oil Refiners Index.

The MVIS Global Oil Refiners Index tracks the performance of the largest and most liquid companies in global oil refining.

The MVIS Global Oil Refiners Index invests in firms that produce gasoline, jet fuel, fuel oil, naphtha and other petrochemicals.

23. Energy Select Sector SPDR ETF

Ticker Symbol: XLE

The Energy Select Sector SPDR ETF buys stocks of the energy companies listed in the S&P 500.

These companies work in the following areas oil, gas and consumable fuels, or energy equipment and services.

The Energy Select Sector SPDR ETF uses a weighted-average based on the size of the company to determine investment size.

This ETF is the largest and most liquid of all the crude oil ETFs mentioned on this page.

The Energy Select Sector SPDR ETF mimics the return of the Energy Select Sector Index.

This ETF invests at least 95% of its assets in the stocks that make up the Energy Select Sector Index.

The Energy Select Sector Index tracks all the energy companies in the S&P 500 with a weighted-average approach.

24. Vanguard Energy ETF

Ticker Symbol: VDE

The Vanguard Energy ETF buys energy companies in United States approved by MSCI.

MSCI stands for Morgan Stanley Capital International.

This crude oil ETF invests in large, mid-size and small companies.

The Vanguard Energy ETF uses an index strategy to offer broad exposure to the United States energy sector.

As with other Vanguard guard products, this ETF is a low-cost product.

The Vanguard Energy ETF mimics the performance of the MSCI U.S. Investable Market Energy Index.

The MSCI U.S. Investable Market Energy Index tracks the performance energy companies.

These companies are United States energy companies in the Global Industry Classification Standard.

25. PowerShares Dynamic Energy Exploration & Production ETF

Ticker Symbol: PXE

The PowerShares Dynamic Energy Exploration & Production ETF buys United States companies in energy exploration and production.

The PowerShares Dynamic Energy Exploration & Production ETF uses growth and value metrics to weigh its investments.

This crude oil ETF mimics the return of the Dynamic Energy Exploration & Production Intellidex Index.

The Dynamic Energy Exploration & Production Intellidex Index tracks the performance of 30 U.S. companies.

These companies are in the exploration and production of natural resources that produce energy.

These 30 companies engage in the exploration, extraction and production of crude oil and natural gas.

26. iShares US Oil & Gas Exploration & Production ETF

Ticker Symbol: IEO

The iShares US Oil & Gas Exploration & Production ETF buys oil and gas exploration and production companies.

This crude oil ETF uses a market cap weight index to select its investments.

The iShares US Oil & Gas Exploration & Production ETF mimics the return of the Dow Jones U.S. Select Oil Exploration & Production Index.

The iShares US Oil & Gas Exploration & Production ETF invests at least 90% of its assets in securities of the underlying Dow Jones index.

The Dow Jones U.S. Select Oil Exploration & Production Index tracks the return of U.S. equities in the oil and gas exploration and production sector.

27. iShares MSCI Global Energy Producers ETF

Ticker Symbol: FILL

The iShares MSCI Global Energy Producers ETF buys energy exploration and production companies.

These companies focus on developed and emerging markets.

This crude oil ETF mimics the return of the MSCI ACWI Select Energy Producers Investable Market Index.

The MSCI ACWI Select Energy Producers Investable Market Index tracks the performance of energy exploration and production companies.

This index excludes companies that make most of their money from:

1) Alternative Fuels
2) Marketing
3) Storage
4) Transportation of Oil and Gas

The iShares MSCI Global Energy Producers ETF invests 90% of its assets in the components of the index.

28. VanEck Vectors Oil Services ETF

Ticker Symbol: OIH

The VanEck Vectors Oil Services ETF buys publicly-traded companies in the United States oil services sector.

This ETF mimics the returns of the MVIS US Listed Oil Services 25 Index.

The index tracks the returns of the largest U.S. companies that make at least 50% of their revenues from oil services.

It contains companies engaged in oil equipment, oil services and oil drilling.

The VanEck Vectors Oil Services ETF invests 80% of its total assets in the companies that make up the MVIS U.S. Listed Oil Services 25 Index.

29. iShares US Oil Equipment & Services ETF

Ticker Symbol: IEZ

The iShares U.S. Oil Equipment & Services ETF buys companies that supply equipment and services.

These services and equipment go to oil fields and offshore platforms.

This includes drilling, exploration, seismic information services and platform construction.

This crude oil ETF mimics the Dow Jones U.S. Select Oil Equipment and Services Index.

The Dow Jones U.S. Select Oil Equipment and Services Index tracks the performance of the oil equipment and services sector.

The iShares U.S. Oil Equipment & Services ETF invests 90% of its assets in companies in the index.

30. SPDR S&P Oil & Gas Exploration & Production ETF

Ticker Symbol: XOP

The SPDR S&P Oil & Gas Exploration & Production ETF buys United States oil and gas companies.

These companies take part in the exploration and production of oil and gas.

This ETF mimics the return of the S&P Oil & Gas Exploration and Production Select Industry Index.

The S&P Oil & Gas Exploration and Production Select Industry Index represents the exploration and production of oil and gas section of the S&P Total Market Index.

The S&P Total Market Index tracks all the common stock in the United States listed on the NYSE, AMEX and NASDAQ.

The SPDR S&P Oil & Gas Exploration & Production ETF uses a sampling strategy to mimic the index.

The ETF invests at least 80% of its total assets in companies that make up the index.

31. Guggenheim Canadian Energy Income ETF

Ticker Symbol: ENY

The Guggenheim Canadian Energy Income ETF buys Canadian energy companies in royalty trusts and oil sands.

This ETF mimics the return of the S&P/TSX High Income Energy Index.

The S&P/TSX High Income Energy Index measures the performance of 27 high yield stocks in the Canadian energy sector.

High yield means these companies pay dividends higher than 1.5%.

The Guggenheim Canadian Energy Income ETF uses a passive indexing approach to mimic the index.

32. First Trust Nasdaq Oil & Gas ETF

Ticker Symbol: FTXN

The First Trust Nasdaq Oil & Gas ETF buys oil and gas companies based in the United States.

This crude oil ETF selects its investments by liquidity, volatility, value and growth.

The First Trust Nasdaq Oil & Gas ETF mimics the performance of the Nasdaq U.S. Smart Oil & Gas Index.

The Nasdaq US Smart Oil & Gas Index tracks the performance of 50 large-cap stocks in the United States energy sector.

The index screens for average price appreciation, cash flow to price and expected volatility.

The First Trust Nasdaq Oil & Gas ETF invests 90% of its assets in the stocks that make up the Nasdaq US Smart Oil & Gas Index.

33. IQ Global Oil Small Cap ETF

Ticker Symbol: IOIL

The IQ Global Oil Small Cap ETF buys small cap oil companies involved in the following activities:

1) Exploration
2) Production
3) Refining
4) Marketing
5) Equipment
6) Services
7) Drilling

This crude oil ETF mimics the performance of the IQ Global Oil Small Cap Index.

The IQ Global Oil Small Cap Index tracks the performance of global small cap companies engaged in same activities listed above.

This index uses a rules based, modified cap weighted and float adjusted formula to select investments.

The IQ Global Oil Small Cap ETF invests at least 80% of it assets in the investments that make up the index.

34. SPDR S&P Oil & Gas Equipment & Services ETF

Ticker Symbol: XES

The SPDR S&P Oil & Gas Equipment & Services ETF buys companies in the oil and gas equipment and services sub industry of the S&P Total Markets Index.

This crude oil ETF mimics the performance of the S&P Oil & Gas Equipment & Services Select Industry Index.

This Index tracks the performance of the oil and gas equipment and services sub-industry portion of the S&P Total Markets Index.

The index is an equal weighted market cap index.

The SPDR S&P Oil & Gas Equipment & Services ETF invests at least 80% of its total assets in the securities comprising the index.

The ETF uses a sampling strategy to select its investments.

35. PowerShares Dynamic Oil & Gas Services ETF

Ticker Symbol: PXJ

The PowerShares Dynamic Oil & Gas Services ETF invests in a tiered index of companies in the oil and gas services sector.

This ETF mimics the performance of the Dynamic Oil Services IntellidexSM Index.

The Dynamic Oil Services IntellidexSM Index tracks the performance of oil and gas services companies.

These companies assist in the production, processing and distribution of oil and gas.

The index evaluates companies based on fundamental growth, value, investment timeliness and risk.

The PowerShares Dynamic Oil & Gas Services ETF invests at least 90% of its assets in the companies that make up the index.

36. VanEck Vectors Unconventional Oil & Gas ETF

Ticker Symbol: FRAK

The VanEck Vectors Unconventional Oil & Gas ETF buys unconventional oil and natural gas companies.

These companies focus on exploration and refining.

This oil ETF mimics the performance of the MVIS Global Unconventional Oil & Gas Index.

This index contains companies that generate at least 50% of their revenues from unconventional oil and gas.

Companies in the index can be below the 50% threshold.

But they have properties with the potential to generate at least 50% of their revenues from unconventional oil and gas.

This index covers 90% of the unconventional oil and gas market.

The VanEck Vectors Unconventional Oil & Gas ETF invests at least 80% of its assets in companies that make up the index.

37. DB Crude Oil Double Short ETN

Ticker Symbol: DTO

The DB Crude Oil Double Short ETN shorts the West Texas Intermediate futures contract.

This crude oil ETN also uses leverage to magnify its performance (positive or negative) by 2 times.

The DB Crude Oil Double Short ETN mimics 200% of the inverse return of the Deutsche Bank Liquid Commodity Index – Optimum Yield Oil Excess Return.

The index is a rules-based index composed of West Texas Intermediate crude oil futures contracts.

This index reflects the returns of crude oil.

38. DB Crude Oil Short ETN

Ticker Symbol: SZO

The DB Crude Oil Short ETN shorts the West Texas Intermediate futures contract.

This crude oil ETN does not use leverage to magnify its performance. It does select contracts by minimizing contango.

The DB Crude Oil Short ETN mimics the inverse return of the Deutsche Bank Liquid Commodity Index – Optimum Yield Oil Excess Return.

The index is a rules-based index composed of West Texas Intermediate futures contracts.

This index reflects the returns of crude oil.

39. United States Short Oil

Ticker Symbol: DNO

The United States Short Oil shorts the following futures contracts:

1) West Texas Intermediate
2) Diesel-Heating Oil
3) Gasoline
4) Natural Gas
5) Other petroleum-based fuels

This crude oil ETF doesn’t use leverage so its returns are not magnified.

The United States Short Oil mimics the inverse return of the spot price of West Texas Intermediate.

40. ProShares UltraShort Bloomberg Crude Oil

Ticker Symbol: SCO

The ProShares UltraShort Bloomberg Crude Oil shorts West Texas Intermediate crude oil futures contracts.

This crude oil ETF uses leverage so its performance (good or bad) gets magnified 200%.

The ProShares UltraShort Bloomberg Crude Oil mimics 2 times the inverse return of the Bloomberg WTI Crude Oil Subindex.

This index tracks the performance of crude oil by purchasing front-month West Texas Intermediate Crude Oil futures contract.

The index and the ETF use a rolling technique so when a futures contract nears expiration it rolls into the next contract.

41. VelocityShares 3x Inverse Crude Oil ETN

Ticker Symbol: DWT

The VelocityShares 3x Inverse Crude Oil ETN shorts the front-month West Texas Intermediate Crude Oil futures contract.

This crude oil ETN uses leverage so performance (good or bad) gets magnified 300%.

The VelocityShares 3x Inverse Crude Oil ETN mimics 3 times the inverse return of the S&P GSCI® Crude Oil Index.

The index tracks the performance of the front-month West Texas Intermediate Crude Oil futures contract.

The index and the ETF use a rolling technique so when a futures contract nears expiration it rolls into the next contract.

42. UBS ETRACS ProShares Daily 3x Inverse Crude ETN

Ticker Symbol: WTID

The UBS ETRACS ProShares Daily 3x Inverse Crude ETN shorts front-month West Texas Intermediate crude oil futures contracts.

This crude oil ETN uses leverage so performance (good or bad) gets magnified 300%.

The VelocityShares 3x Inverse Crude Oil ETN mimics 3 times the inverse return of the Bloomberg WTI Crude Oil Subindex.

The index tracks the performance of the nearest-term West Texas Intermediate futures contract.

The index and the ETF use a rolling technique so when a futures contract nears expiration it rolls into the next contract.

43. United States 3x Short Oil Fund

Ticker Symbol: USOD

The United States 3x Short Oil Fund shorts front-month West Texas Intermediate Crude Oil futures contract.

This crude oil ETN uses leverage so performance (good or bad) gets magnified 300%.

The United States 3x Short Oil Fund mimics 3 times the inverse return of the West Texas Intermediate Crude Oil futures contract.

The index and the ETF use a rolling technique so when a futures contract nears expiration it rolls into the next contract.

44. ProShares Short Oil & Gas

Ticker Symbol: DDG

The ProShares Short Oil & Gas ETF invests in derivatives that mimic the inverse daily performance of the Dow Jones U.S. Oil & Gas Index.

This crude oil ETF does not use leverage so returns are not magnified.

The Dow Jones U.S. Oil and Gas Index measures the performance of the oil and gas sector of the U.S. equity market.

Sectors that make up this index include the following:

1) Exploration and Production
2) Integrated Oil and Gas
3) Oil Equipment and Services
4) Pipelines
5) Renewable Energy Equipment
6) Alternative Fuel Producers

45. ProShares UltraShort Oil & Gas

Ticker Symbol: DUG

The ProShares UltraShort Oil & Gas invests in derivatives that will mimic two times the inverse daily performance of the Dow Jones U.S. Oil & Gas Index.

This crude oil ETN uses leverage so performance (good or bad) gets magnified 200%.

The Dow Jones U.S. Oil and Gas Index measures the performance of the oil and gas sector of the U.S. equity market.

Sectors that make up this index include the following:

1) Exploration and Production
2) Integrated Oil and Gas
3) Oil Equipment and Services
4) Pipelines
5) Renewable Energy Equipment
6) Alternative Fuel Producers

46. Direxion Daily S&P Oil & Gas Exploration & Production Bear 3X Shares

Ticker Symbol: DRIP

The Direxion Daily S&P Oil & Gas Exploration & Production Bear 3X Shares invests in futures contracts.

It also invests in swap agreements and other financial instruments.

This crude oil ETF uses leverage so performance (good or bad) gets magnified 300%.

This ETF mimics 3 times the inverse performance of the S&P Oil & Gas Exploration & Production Select Industry Index.

This index tracks the performance of companies in the oil and gas exploration and production sub-industry of the Global Industry Classification Standards.

47. United States 3x Oil Fund

Ticker Symbol: USOU

The United States 3x Oil Fund buys the front-month West Texas Intermediate crude oil futures contract.

This crude oil ETF uses leverage so performance (good or bad) gets magnified 300%.

The United States 3x Oil Fund mimics 3 times the performance of the West Texas Intermediate Crude Oil futures contract.

The United States 3x Oil Fund sells its futures contracts near expiration and buys next month’s futures contract.

48. UBS ETRACS ProShares Daily 3x Long Crude ETN

Ticker Symbol: WTIU

The UBS ETRACS ProShares Daily 3x Long Crude ETN buys the front-month West Texas Intermediate Crude Oil futures contract.

This crude oil ETN uses leverage so performance (good or bad) gets magnified 300%.

The UBS ETRACS ProShares Daily 3x Long Crude ETN mimics 3 times the performance of the Bloomberg WTI Crude Oil Subindex.

The index tracks the performance of a rolling long position in West Texas Intermediate Crude Oil futures contracts.

49. ProShares Ultra Bloomberg Crude Oil

Ticker Symbol: UCO

The ProShares Ultra Bloomberg Crude Oil buys the front-month West Texas Intermediate Crude Oil futures contract.

This crude oil ETF uses leverage so performance (good or bad) gets magnified 200%.

The ProShares Ultra Bloomberg Crude Oil mimics 2 times the performance of the Bloomberg WTI Crude Oil Subindex.

This index tracks the performance of a rolling long position in West Texas Intermediate Crude Oil futures contracts.

50. VelocityShares 3x Long Crude Oil ETN

Ticker Symbol: UWT

The VelocityShares 3x Long Crude Oil ETN buys the front-month West Texas Intermediate Crude Oil futures contract.

This crude oil ETF uses leverage so performance (good or bad) gets magnified 300%.

The VelocityShares 3x Long Crude Oil ETN mimics 3 times the performance of the S&P GSCI® Crude Oil Index.

The S&P GSCI® Crude Oil Index tracks the performance of a long position in West Texas Intermediate Crude Oil futures contracts.

The index rolls expiring futures contracts into next month’s future contract.

51. Direxion Daily S&P Oil & Gas Exploration & Production Bull 3X ETF

Ticker Symbol: GUSH

The Direxion Daily S&P Oil & Gas Exploration & Production Bull 3X ETF buys financial derivatives.

This ETF gives you exposure to the largest oil and gas exploration and production companies in the United States.

This crude oil ETF uses leverage so performance (good or bad) gets magnified 300%.

This ETF mimics 3 times the performance of the S&P Oil & Gas Exploration & Production Select Industry Index.

This index tracks the performance of companies in the Global Industry Classification Standards industry of oil and gas exploration and production.

Conclusion

So there you have it. 51 crude oil ETFs and ETNs you can add to your portfolio.

But you need to choose wisely. Not all crude oil investments are created equal.

Some of them have very large negative returns.

To help you avoid the landmines, I created the Crude Oil Investment Report. Download it here for free.

Glossary of Definitions

Brent Crude Oil

Brent Crude Oil serves as a benchmark price for oil worldwide. It gets extracted from the North Sea and was originally from the Brent oil field.

Call

An agreement that gives you the right to buy an asset at a specific price within a certain amount of time. You don’t have to buy the asset but you can. For example, you might own a call that gives you the right to buy 100 shares of Apple stock for $500 within 6 months.

Cap Weighted

Weighting components of an ETF or index based on the total market value of their outstanding shares.

Commodity

A good or service that has wide availability and limited individual characteristics. For example, gasoline is a commodity. One gallon of gasoline isn’t much different from another gallon of gasoline.

Contango

A market situation where the futures prices of a commodity is higher than the expected future spot price. For example, the crude oil futures price is $50 per barrel for delivery in 3 months but the expected price of an actual barrel of crude oil 3 months from now is $40.

Covered Call

A transaction where you sell a call on an asset you already own. With this technique you want to collect the price someone pays for the call as extra income. For example, if you own 1 share of Apple stock and it’s currently priced at $100, you would sell 1 call with a strike price of $110.

Delivery Date

Also called the expiration date. The date that you have to fulfill your contractual obligation under a futures contract. For example, if a crude oil futures contract has a delivery date of 1/31/2018, you would have to deliver or purchase barrels of crude oil on this date. Don’t worry, almost no one does this. Most investors close that position and open another one in a futures contract with a different delivery date.

Derivatives

A financial contract that obtains its value from an underlying asset. A call is a derivative. A call gets its value from the underlying stock price. For example, a call for Apple stock only has value because it gives you the ability to buy Apple stock.

Dividend

A payment from a company to its owners that reflects company earnings. Dividends can give owners a steady return regardless of company price.

Float Adjusted

Used in weighted stock market indices. The market value of companies gets adjusted to only count shares available to investors. Shares held by the company, other companies or the government get excluded.

Forward Contracts

An agreement between two parties to buy or sell an asset at a given price on a future date. Forward contracts do not trade on exchanges. They are custom agreements.

Front-Month

This refers to a futures contract with a delivery date closest to the current date.

Futures Contracts

An agreement between two parties to buy or sell an asset at a given price on a future date. Futures contracts do trade on exchanges. They are standard agreements.

Index

A hypothetical portfolio of securities representing a particular market or a segment of it. You can’t invest directly in an index.

Leverage

An investing strategy using borrowed money to magnify your returns (positive or negative).

Liquid or Liquidity

How quickly an asset can convert to cash. Apple stock is more liquid than real estate.

Long

Buying an asset or futures contract. By entering a long position, you expect the price of an asset to go up.

Market Cap

The market value of a company’s outstanding shares.

Master Limited Partnership

A type of business venture that exists in the form of publicly traded limited partnership.

Naphta

A flammable liquid. A hydrocarbon mixture.

Option

A financial derivative that gives the owner the right, but not the obligation, to buy or sell a security at a specific price at a point in the future.

Passive Indexing

An investing strategy that tracks an index with low transaction costs and low management fees.

Petrochemicals

Chemical products derived from petroleum.

RBOB Gasoline

RBOB stands for reformulated blendstock for oxygenate blending. It gets used in cars, yard equipment and other household products.

Rolling

Closing out of a current contract and opening the same position in the next front-month contract.

Short

Selling an asset without owning the asset. With this position you expect the price of an asset to fall.

Spot Price

The actual price of the physical commodity. For example, the actual price of a barrel of crude oil is the spot price for crude oil.

Stock

A type of security that gives you ownership in a corporation.

Strike Price

The fixed price that an option owner can buy or sell an asset. If you own a call option for Apple stock with a strike price of $100, that call gives you the right to buy Apple stock for $100.

Sub-Index

A small group of securities within a larger group of securities. For example, energy stocks within the S&P 500 could be a sub-index.

Swaps

A contract where two parties exchange cash flows of financial instruments. For example, you might hold a variable-rate bond and swap the cash flow for a fixed-rate bond. Swaps are not traded on exchanges.

Volatility

A measure of the range of returns possible for a given asset. Investors use volatility to understand the uncertainty and risk in the market.

Weighted Average

You find an average by adding up all the numbers in a series and then dividing by the number of numbers. A weighted average assigns an important (or weight) to each number based on a criteria. This gives certain numbers more importance than others.

West Texas Intermediate Crude Oil

A grade of crude oil used as a benchmark in oil pricing. Also known as light, sweet crude oil.

Yield

The annual income return on an investment such as dividends. To calculate dividend yield (a type of yield) of a stock, divide the annual dividend payment by the current stock price. For example, if Apple paid a $2 annual dividend and the stock cost $100, the dividend yield would be 2%.

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