This post is part of a special annual report -- Top Stock Picks '09 -- in which TheStockAdvisors.com asked 75 leading newsletter advisors to select their favorite investment for the new year.

"ProShares Ultra Oil and Gas (NYSE: DIG), my top idea for 2009, is an exchange-traded fund that positions itself with the performance of the United States' top oil and gas companies," says growth stock specialist Paul Tracy.

In his StreetAuthority Market Advisor, he explains, "The 'ultra' part of its name means that the fund uses leverage, which magnifies returns by a factor of two relative to the Dow Jones U.S. Oil & Gas Index."

The advisor continues, "DIG is a leveraged ETF. In short, for every 1% the U.S. Oil & Gas Index rises, DIG should rise 2%. That means the performance of DIG is dictated by the moves of the largest industry heavyweights like ExxonMobil, ConocoPhillips, and Chevron.

"In addition to integrated oil companies, DIG is also exposed to major oilfield service companies like Schlumberger and Halliburton and gas-industry leaders like Apache.

"The world simply cannot, in its current form, live without fossil fuels. Global demand for petroleum is roughly 85 million barrels of oil a day, which means the activity in the oilfields simply never stops.

Continue reading Top Stock Picks '09: ProShares Ultra Oil & Gas (DIG)

Top Stock Picks '09: ProShares Ultra Oil & Gas (DIG) originally appeared on BloggingStocks on Tue, 06 Jan 2009 16:00:00 EST. Please see our terms for use of feeds.