PowerShares DB Energy Fund
While most investment in physical commodities is done through futures — which can be complicated and risky — a variety of ETFs make it much more accessible to individual investors. One is the PowerShares DB Energy Fund (NYSE:DBE) ETF
The fund is based on the DBIQ Optimum Yield Energy Index Excess Return, which tracks futures in light sweet crude oil (WTI), heating oil, Brent crude oil, RBOB gasoline and natural gas, providing investors with wide exposure to a number of energy sources.
DBE, which charges 0.75% in expenses, has been fairly steady over the past three years, notching annual gains of more than 5% during the past three years. Still, when energy markets move big, DBE usually gets a nice boost in turn, like in 2009 when the fund posted a whopping 30% return.
Tom Taulli runs the InvestorPlace blog IPO Playbook. He is also the author of “How to Create the Next Facebook” and “High-Profit IPO Strategies: Finding Breakout IPOs for Investors and Traders.”Follow him on Twitter at @ttaulli. As of this writing, he did not hold a position in any of the aforementioned securities.