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Is it worth investing in an Oil EFT fund?

Discussion in 'Other Asset Classes' started by Abooking, 14th Mar, 2016.

  1. Abooking

    Abooking Well-Known Member

    Joined:
    24th Jun, 2015
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    Location:
    nsw
    Is the oil bear market a once in a lifetime opportunity at the moment?

    Do you think it would be worth putting some money in an Oil based EFT fund?

    cheers
     
    Bran likes this.
  2. TwoDogs

    TwoDogs Well-Known Member

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    25th Jun, 2015
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    Location:
    Sydney
    If you believe that oil is going up,why not. I would prefer to invest via actual companies who can leverage off oil prices and pay a dividend. Of course they may do a bad job and get worse (ie STO), but that's part of fun...

    Works better when the companies are bit beaten up and oversold due the low oil price. Spread the risk over a few to reduce single company risk, which is what an oil EFT can't do.

    Same applies to gold.
     
    radson likes this.
  3. radson

    radson Well-Known Member

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    Balmain
  4. The Falcon

    The Falcon Well-Known Member

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    Sydney
    As a punter I'd be more inclined to buy WPL and just bottom draw it if I wanted that exposure. But I don't.