Topic: How To Invest

Please give me your advice on ProShares Ultra Oil & Gas ETF (NYSE:DIG).

Article Excerpt

ProShares Ultra Oil & Gas ETF, $28.41, symbol DIG on New York, (Shares outstanding: 23.3 million; Market cap: $662.9 million) seeks returns that correspond to twice (200%) the daily performance of the Dow Jones U.S. Oil & Gas Index. The ETF first sold shares to the public at $70 and began trading on New York in January, 2007. The ETF’s top 10 holdings are Exxon Mobil (34.9%), Chevron (13.1%), ConocoPhillips (6.4%), Schlumberger (4.7%), Occidental Petroleum (4.3%), Devon Energy (2.5%), Apache (2.3%), XTO Energy (1.9%), Marathon Oil (1.8%) and Anadarko Petroleum (1.6%). As a general rule, we advise against the kind of leverage used in ProShares Ultra Oil & Gas, just as we advise against options trading, currency speculation and bond trading. In all these activities, it’s a rare investor who makes enough profit to compensate for the risk involved. Our view is that if you like the outlook for a market index, you should invest in stocks that will profit from a..