Crude oil has been fairly weak for months, falling about 6% amid drivers such as a strengthening U.S. dollar, fears that the Fed will pull back on its easy monetary policy, and the overall fragility of the global economy.
Still, it’s hard not to like the long-term prospects for oil, as well as the broader energy sector. Oil is becoming increasingly more difficult to find, plus any turmoil in the Middle East always looms as a potential catalyst for prices.
Meanwhile, we’re seeing more advances in natural gas use, and looking even farther down the line, it’s hard not to see the eventual rise of alternative energy sources like solar and wind.
You could try to pick and choose among a number of single-stock plays, but if you just want to gain broad exposure to the energy market, you can do so through some of these mutual funds and exchange-traded funds: