Go to the Bench for Oil Substitute

WisdomTree International Energy stacks up well by common valuation measures with BP. It trades at 10.95 times next year's earnings compared to 10.46 for BP, but WisdomTree International Energy is cheaper on a price-to-sales basis, 0.67 to 0.83, and price-to-book, 2.52 to 2.63.

U.K. companies make up the biggest part the fund at 27.4% of assets. Australia is second with 13% followed by Italy at 12%.

The fund has limitations that could make it less than ideal as the sole energy holding in a diversified portfolio. It is dominated by integrated oil companies. While there are drillers, service companies and other narrower stocks, their respective weights might not be enough to contribute meaningfully to the fund's performance.

There are also some countries important to the energy sector that are either not included or are very underweight. China is only represented by CNOOC (CEO Quote) at 3.38%, and Canada and Russia are omitted completely, which means very little emerging-market exposure and no oil-sands exposure. I think both of these themes are important.

Another potential bogey is the high Australian exposure at 13%. The two biggest Australian stocks, Woodside Petroleum and Santos, are lagging the Energy Select Sector SPDR (XLE Quote) by about 15% year-to-date.

It should be noted that the average volume for WisdomTree International Energy is a thin 5,600 shares a day, but low volume isn't an indication of poor liquidity where ETFs are concerned. ETF providers and the specialists who trade them do not want to be known for having products that can't trade. The key here is to use limit orders and have patience. I bought roughly 11,000 shares in two trades and there were 20,000 shares offered for sale by the specialist for the entire time that my orders were pending.