Securities Lawyers Blog
A strengthening dollar and increased global supply of oil has sent crude oil prices tumbling in the second half of 2014. Recently, crude futures for delivery in February 2015 fell to $52.69 a barrel, the lowest finish since April 2009. Some experts are saying that if production volume continues to be as high as it currently is and demand growth weak that the return to $100 a barrel is years away.
As a result, in recent months investors have contacted our firm about being concentrated in various oil and gas exposed investments including private placements, stocks, and ETFs. On the private placement side alone the Securities Exchange Commission (SEC), has stated that since 2008, approximately 4,000 oil and gas private placements have sought to raise nearly $122 billion in investor capital. However, these oil and gas private placements suffer from enormous risks that often outweigh any potential benefits including securities fraud, conflicts of interests, high transaction / sales costs, and investment risk.
In addition, investor accounts may be overconcentrated in oil and gas stocks or ETFs. Some of these ETFs may be leveraged or non-traditional ETFs. These leveraged ETFs seek to increase the return on the oil and gas index by using leverage to amplify returns exposing the investor to greater volatility during an already volatile period in the oil market. Below are some of oil and gas related ETFs.
Exchange Traded Funds
AXEN – iShares MSCI ACWI ex US Energy Sector Index ETF
CHIE – Global X China Energy ETF
DBE – PowerShares DB Energy ETF
EMLP – First Trust North American Energy Infrastructure ETF
ENFR – Alerian Energy Infrastructure ETF
ENY – Claymore/SWM Canadian Energy Income ETF
ERX – Direxion Daily Energy Bull 3X Shares ETF
ERY – Direxion Daily Energy Bear 3X Shares ETF
FILL – iShares MSCI Global Energy Producers Fund
FXN – First Trust Energy AlphaDEX ETF
ICLN – iShares S&P Global Clean Energy Index ETF
IPW – SPDR S&P International Energy Sector ETF
IXC – iShares S&P Global Energy Sector ETF
IYE – iShares Dow Jones US Energy Sector ETF
JJE – iPath DJ-UBS Energy Total Return Sub-Index ETN
OGEM – EGShares Energy GEMS ETF
ONG – iPath Pure Beta Energy ETN
PSCE – PowerShares S&P SmallCap Energy Portfolio
PUW – PowerShares WilderHill Progressive Energy ETF
PXE – PowerShares Dynamic Energy Exploration & Prod ETF
PXI – PowerShares Dynamic Energy ETF
RGRE – RBS Rogers Enhanced Energy ETN
RJN – ELEMENTS Rogers International Commodity Energy ETN
RYE – Rydex S&P Equal Weight Energy ETF
UBN – UBS E-TRACS CMCI Energy Total Return ETN
VDE – Vanguard Energy ETF
XLE – Energy Select Sector SPDR
Natural Gas ETFs
DCNG – iPath Seasonal Natural Gas ETN
DDG – The Short Oil and Gas ProShares ETF
FCG – First Trust ISE-Revere Natural Gas ETF
BOIL – ProShares Ultra DJ-UBS Natural Gas ETF
KOLD – UltraShort DJ-UBS Natural Gas ETF
FRAK – Market Vectors Unconventional Oil & Gas ETF
GASL – Direxion Daily Natural Gas Related Bull 3X Shares ETF
GASX – Direxion Daily Natural Gas Related Bear 3X Shares ETF
GASZ – ETRACS Natural Gas Futures Contango ETN
GAZ – iPath DJ AIG Natural Gas TR Sub-Index ETN
IGAS – Global Natural Gas Small Cap Equity ETF
MLPG – UBS E-TRACS Alerian Natural Gas MLP Index ETN
NAGS – Teucrium Natural Gas Fund
UNG – United States Natural Gas ETF
Crude Oli ETF’s
BARL – Morgan Stanley S&P 500 Crude Oil Linked ETN
BNO – United States Brent Oil Fund
DBO – PowerShares DB Oil ETF
DNO – United States Short Oil Fund ETF
DTO – PowerShares DB Crude Oil Double Short ETN
DUG – UltraShort Oil & Gas ProShares ETF
IOIL – Global Crude Oil Small Cap Equity ETF
FRAK – Market Vectors Unconventional Oil & Gas ETF
OIH – Market Vectors Oil Services ETF
OIL – Goldman Sachs Crude Oil Total Return ETN
OILZ – ETRACS Oil Futures Contango ETN
OLEM – iPath Pure Beta Crude Oil ETN
OLO – PowerShares DB Crude Oil Long ETN
SCO – ProShares UltraShort DJ-AIG Crude Oil ETF
SZO – PowerShares DB Crude Oil Short ETN
USO – United States Oil Fund ETF
USL – United States 12 Month Oil Fund ETF
UHN – United States Heating Oil Fund ETF
UCO – ProShares Ultra DJ-AIG Crude Oil ETF
DDG – The Short Oil and Gas ProShares ETF
CRUD – Teucrium WTI Crude Oil Fund
WCAT – Jefferies TR/J CRB Wildcatters Expl& Prod Equity ETF
FOL – FactorShares 2X Oil Bull/S&P500 Bear ETF
SNDS – Sustainable North American Oil Sands ETF
Investors who have suffered losses in these products are encouraged to contact our firm. Brokers who sell oil and gas investments have an obligation to make sure that the investment is suitable for the investor and to disclose all the risks associated with the product. Our consultations are free of charge and the firm is only compensated if you recover.