Go to the Bench for Oil Substitute

A way to use ETFs is as a substitute for a stock. If investors need to sell a stock for tax reasons they can switch into a similar ETF that captures most of the effect of owning the stock. Later on they can sell the ETF and buy the same stock back.

I made such a substitution trade Monday for clients, selling British Petroleum (BP Quote) and buying WisdomTree International Energy Fund (DKA Quote).

My clients have owned BP for several years. The case for BP is simple: It's a mega-cap, integrated oil company with a big presence in many emerging markets and has a very healthy 3.5% yield. BP has had more than its fair share of problems, including a deadly refinery accident in Texas for which it is being sued, a pipeline shutdown in Alaska and allegations of price fixing in various markets. ...