PowerShares DB Energy Fund
Finally, investing in the producers of a certain commodity is completely different from investing in the underlining commodity itself. The energy sector is no different.
The PowerShares DB Energy Fund (NYSE:DBE) allows investors to profit from a wide swath of energy-related commodities and their prices. The ETF tracks the DBIQ Optimum Yield Energy Index Excess Return — a benchmark consisting of natural gas, WTI & Brent crude, RBOB Gasoline and heating oil futures contracts.
DBE charges 0.78% in expenses and is structured as a limited partnership for tax purposes.
Than means it could produce some headaches come tax time — you’ll get a K-1 statement — but it’s still a good choice for the risk-tolerant investor looking to cash in on the rising energy prices.
As of this writing, Aaron Levitt did not own a position in any of the aforementioned securities.