As oil prices continue to remain volatile, multi-asset investment platform eToro announced this Tuesday that it has launched a new long oil portfolio so that retail investors can have access to the oil market.
In its statement released today, eToro said that it has launched the new product in response to the in the US oil market which saw prices go into the negative territory earlier this month for the first time in history. This significant drop was a result of the , which has destroyed around a third of global fuel demand since early March.
eToro’s OilWorldWide portfolio
In particular, the portfolio, called OilWorldWide, will give retail investors exposure to 20 global companies across the oil sector, which each represent different stages of production. The portfolio also includes oil-related instruments such as two ETFs and an oil futures contract.
The minimum investment for eToro’s OilWorldWide portfolio is $2,000. According to the company, 85 per cent of the portfolio covers 20 of the largest oil companies in the world by market cap.
The remaining 15 per cent is allocated to oil ETFs, including the Energy Select Sector SPDR and SPDR S&P Oil and Gas Exploration and Production. It also encompasses the oil futures contract available on eToro.
“In response to the strong demand we’ve seen from our client base asking for exposure to this part of the market in a regulated way, we have launched this portfolio. Many are viewing the low oil prices and impact this has had on some company’s share prices as a buying opportunity.”
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