VelocityShares 3x Inverse Crude Oil ETN (DWT)

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Looking For A New Leveraged Oil ETF? Where To Go When UWTI, DWTI Delist

By Johanna Bennett

December 6, 2016

There’s been no shortage of opinions rendered by ETF experts since news broke last month that Credit Suisse (CS) plans to delist two of the most popular and controversial oil ETFs. As of Thursday, the (DWTI) will no longer be viable options for most traders.


But just because they won’t available to trade doesn’t mean the demand for these types of products is disappearing anytime soon. Investors have just two day to find alternative products to get the leveraged oil exposure they want.

As the Wall Street Journal reported recently, it’s a space that ProShare Advisors is looking to fill, and they will do battle with U.S. Commodity Funds.

ProShares announced on Monday announced on Monday its plans to launch triple-leveraged oil exchange-traded funds. That comes roughly two weeks after US Commodity Funds, the company behind the U.S. Oil Fund ETF (USO), filed a preliminary prospectus to do the same on Nov. 29.

Proshares already offers two oil futures ETFs, which provide doubled exposure to the rise and fall of oil prices. The ProShares Ultra Bloomberg Crude Oil (UCO) is the largest competitor to UWTI, while its sister, the ProShares UltraShort Bloomberg Crude Oil (SCO) is an alternative to DWTI.

And then there are the leveraged oil ETFs offered by Direxion — the Direxion Daily Energy Bull 3x Shares (ERX), the Direxion Daily Energy Bear 3x Shares (ERY). Both funds provide triple leveraged exposure, but to energy stocks rather than oil prices.

http://blogs.barrons.com/focusonfunds/2016/12/06/looking-for-a-new-leveraged-oil-etf-where-to-go-when-uwti-dwti-delist/?mod=yahoobarrons&ru=yahoo