Energy Sector ETFs

We feel oil prices will continue to dominate the market and consumer sentiment throughout 2006. We feel we are not going to purchase gas at less than $2 a gallon anytime in 2006. For average consumers, the only way to offset the loss at gas stations seems to be investing in oil stocks and recycle the money back to your pocket.

In order to avoid risk and dependance on any particular stock, it's always better to go for some exchange traded fund (ETF). Energy sector ETFs have been top performers in 2005 but if gas price remains above $2, the oil companies will continue their profit in a big way. So, we should not consider a contrarion viewpoint here. Energy will continue to be a major headache for human civilization in years to come. It seems to be a good idea to be invested in this.

Here are some of the prominent energy-sector ETFs:
Energy Select SPDR (XLE) , iShares Dow Jones U.S. Energy (IYE), Oil Service HOLDRS (OIH), Vanguard Energy Vipers (VDE), PowerShares Dynamic Energy Exploration & Production (PXE) and Powershares ETF for alternative energy sector, PBW.