July 5, 2010 | In: Money

What Is The Best Oil ETF And Copper ETF To Invest In?

Let us first look at the best oil ETF that you can invest in. Now, one cannot answer this directly, and if you are going to ask different expert investors, you’re going to end up with different answers as well. This is because there are a lot of opinions or suggestions as to which is the best oil or energy ETF. But perhaps, the best choice for an oil ETF would be that of iShared CDN Energy Sector Index or CA:XEG. The XEG makes trades on the Toronto Stock Exchange or TSX. With this at hand, there’s a high possibility that there might be two questions in your mind right now. First is that this is a Canadian ETF and trades done on a Canadian stock market and second, is that it really isn’t oil ETF but an energy ETF. Let’s take on the first point specifically why should you invest in Canadian oil ETF rather than a U.S. ETF or international ETF. Well, Canada has a lot going for itself recently, which is one of the best reasons why its currency is kicking off along with its stock market. One of the main causes why there has been a rise in the Canadian dollar is that because it is considered a petrol currency. In short, the Canadian dollar is increasing largely due to the rise in the prices of oil and that Canada is a country that is abundant natural resources.

On the other hand, the best copper ETF that you can invest in would come in two choices specifically pure copper ETFs and ETFs that have a mix of both copper and other metal varieties such as gold, silver, aluminum, or palladium. The first one is a good choice if you’re someone who believes that investing on copper does not involve any risk and that you see that the rise in demand for this metal will continue to increase thus, making an investment on it a very good choice. However, if you are one who wants to keep things safe, then you can go for the latter. In here, you need not risk having a major loss because you are making small investments in multiple funds.

Comment Form