5 Funds to Play U.S. Oil Dominance

IEA predicts America will lead world in oil producing by 2017

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5 Funds to Play U.S. Oil Dominance

Market Vectors Unconventional Oil & Gas ETF

VanEck 5 Funds to Play U.S. Oil DominanceAccording to the IEA, the net increase in global oil production will be driven entirely by unconventional resources, and the U.S. will be the single biggest contributor to the shale oil, natural gas and natural gas liquids markets.

Already, shale regions like the Bakken, Eagle Ford and Marcellus are leading production in the U.S. That means betting on the firms tapping these regions could be in order.

The Market Vectors Unconventional Oil & Gas ETF (NASDAQ:FRAK) tracks a basket of firms involved in shale, coal-bed methane and oil-sands extraction. While the oil sands are located in Canada, many of the firms that operate there also have a plethora of U.S.-based assets and will participate in the nation’s energy growth. Top holdings include Eagle Ford kingpin EOG Resources (NYSE:EOG) and Devon Energy (NYSE:DVN).

While the fund has struggled to gain popularity — it only has about $17 million in assets and trades only 11,000 shares a day — it still offers a concentrated portfolio of some of the best unconventional resource names on the planet. Plus, it only costs you 0.54% in expenses.


Article printed from InvestorPlace Media, http://investorplace.com/2012/11/5-funds-to-play-u-s-oil-dominance/.

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