USL United States 12 Month Oil Fund LP Overview

INVESTING IN USO INVOLVES RISKS SIMILAR TO THOSE INVOLVED WITH AN INVESTMENT DIRECTLY IN THE OIL FUTURES MARKETS, BUT IT IS NOT A PROXY FOR TRADING DIRECTLY IN THE OIL MARKETS AND THESE RISKS ARE REAL. Recent and unprecedented volatility in the crude oil markets in 2020 demonstrates that these risks are real. An investor should consider carefully the risks described below before making crypto trader an investment decision. See the section of the USO prospectus titled “Risk Factors Involved with an Investment in USO.” Certain of these risk factors are summarized in the Disclosures section of this website. The market value of shares of common stock can be volatile and change quickly. Foreign investing involves special risks such as currency fluctuations and political uncertainty.

• For example, if it holds WTI crude oil futures contracts that expire in September 2020, it must roll over its contracts and purchase those that expire in October 2020.
• GLDX, SDCI, UDI, UMI, USE, ZSB, and ZSC shares are not individually redeemable.
• Daring to drink the water of the emerging markets funds could prove to be little more than a way to tap into Montezuma’s revenge.
• We initially share this idea in October 2018 and the stock already returned more than 150%.
• This causes negative roll yields because investors will lose money when selling the futures contracts that are expiring and purchasing further dated contracts at a higher price.

The ETF Trends and ETF Database brands have been trusted amongst advisors, institutional investors, and individual investors for a combined 25 years. The firms are uniquely positioned to aid advisor’s education, adoption, and usage of ETFs, as well as the asset management community’s transition from traditionally analog to digital interactions with the advisor community. This fund offers exposure to one of the the world’s most important commodities, oil, and potentially has appeal as an inflation hedge. While oil may be appealing, USO often suffers from severe contango making the product more appropriate for short-term traders.

United States Oil Overview

Oil prices have soared to their highest levels in many years due to geopolitical tensions in Europe and the Middle East. Greg Brown, fund analyst for Morningstar Inc., says that the new “managed payout funds” offered by fund firms like Vanguard and Fidelity are an intriguing idea, but not yet proven sufficiently to be worth buying. Politics has become so interwoven with finance that you need a degree in politico-economics to get investing in this market right.

A long-running debate in asset allocation circles is how much of a portfolio an investor should… The following charts reflect the allocation of

USO’s

underlying holdings. The following charts reflect the geographic spread of

USO’s

underlying holdings. Dow Jones Industrial Average, S&P 500, Nasdaq, and Morningstar Index (Market Barometer) quotes are real-time.

Our team at ETF Database is committed to making our website the premier source of information on ETF investing with the world’s highest quality ETF tools, content, and resources. ETF Database’s Financial Advisor Reports are designed as an easy handout for clients to explain the key information on a fund. We’d like to share more about how we work and what drives our day-to-day business. ALPS Distributors, Inc., is the distributor for funds sponsored by the United States Commodity Funds LLC and funds that are series of the USCF ETF Trust and not affiliated with either entity or USCF Investments, Inc.

To view all of this data, sign up for a free 14-day trial for ETF Database Pro. To view information on how the ETF Database Realtime Ratings work, click here. Exchange-traded funds focused https://bigbostrade.com/ on oil and gas dropped Monday, as investors weighed as well as economic data prompting concerns that the Federal Reserve may need to keep up its aggressive monetary tightening for longer.

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“(Meanwhile) the jump in crude oil prices following Saudi Arabia’s decision to extend its unilateral production cut until year end has probably helped prevent an even deeper setback for gold as it not only raises inflation but also growth concerns,” Saxo Bank’s Ole Hansen said. Take a look at some ETFs that can benefit from the latest rally in oil prices due to a variety of factors including easing Omicron variant concerns. Investors seeking to tap the oil rally could bet on the ETFs that are directly linked to the futures contracts. Though the news of continuation of China’s zero-Covid policy cast a pall over oil prices on Monday, it is likely to be a short-term drag. As of June 2021, the price of oil has started to increase and is trading around $76 a barrel. This is after a steep decline amidst the global coronavirus epidemic, when the price was trading at around $19 a barrel in May 2020.

Since all futures contracts have an expiration date, the United States Oil Fund must actively roll its front-month futures contract to the WTI crude oil futures contract expiring in the next month to avoid taking delivery of the commodity. The fund primarily holds front-month futures contracts on crude oil and has to roll over its futures contracts every month. For example, if it holds WTI crude oil futures contracts that expire in September 2020, it must roll over its contracts and purchase those that expire in October 2020. Crude oil and natural gas are among commodities that have historically experienced long periods of contango.

In this piece, we will take a look at the ten worst performing commodity ETFs in 2023. If you want to find out what the fuss is all about in the commodities world, then check out 10 Worst Performing Commodity ETFs in 2023. Oil prices are soaring this year as global economies are recovering from the pandemic-led slump.

USO tends to track the price of oil pretty well, and its performance over the trailing 1-, 5-, and 10-year periods is 20.34%, -12.18%, and -19.8%, respectively. GLDX, SDCI, UDI, UMI, USE, ZSB, and ZSC shares are not individually redeemable. Individual investors must buy and sell GLDX, SDCI, UDI, UMI, USE, ZSB and ZSC shares in the secondary market through their brokerage firm. In base metals, copper prices traded higher, as investors watched for U.S. inflation figures and China’s latest economic data, even as concerns remained over the beleaguered property sector. Prices also got a boost from a weaker dollar and strong loan data from top consumer China. Take a look at some ETFs that can benefit from the latest rally in oil prices due to growing fuel consumption and OPEC+’s decision to increase fuel production gradually.

Managed payout funds worth a look, but not yet worth buying

USO’s investment objective is for the daily changes, in percentage terms, of its shares’

NAV to reflect the daily changes, in percentage terms, of the spot price of light sweet

crude oil delivered to Cushing, Oklahoma, as measured by the daily changes in the

Benchmark Futures Contract. Specifically, USO seeks for the average daily percentage

change in USO’s net asset value, for any period of 30 successive valuation days, to be

within plus/minus 10% of the average daily percentage change in the price of the

Benchmark Oil Futures Contract over the same period. Although the fund invests its assets primarily in exchange-listed crude oil futures contracts and oil-related futures contracts, such as natural gas futures contracts, the fund may also invest in swap and forward contracts.

• But uncertainty about the OPEC+ deal, chances of higher output and the resurgence of the delta variant of Covid have made the space a winner.
• The United States Oil Fund was issued on April 10, 2006, by the United States Commodity Fund.
• The following charts reflect the allocation of

  USO’s

  underlying holdings.

• Contango occurs when the price of a futures contract on an underlying asset is above its expected future spot price.
• Since all futures contracts have an expiration date, the United States Oil Fund must actively roll its front-month futures contract to the WTI crude oil futures contract expiring in the next month to avoid taking delivery of the commodity.
• Consequently, backwardation causes investors to profit when rolling expiring futures contracts to futures contracts expiring at a later month.

The hypothetical example does not represent the returns of any particular investment. The Fund’s NAV is calculated by dividing the value of the Fund’s total assets less total liabilities by the number of shares outstanding. Share price returns are based on closing prices for the Fund and do not represent the returns an investor would receive if shares were traded at other times.

Government regulation and taxation Investments held in U.S. government securities and money market instruments can suffer losses. Investment return and value of the Fund shares will fluctuate so that an investor’s shares, when sold, may be worth more or less than their original cost. If Warren Buffett’s hedge fund didn’t generate any outperformance (i.e. secretly invested like a closet index fund), Warren Buffett would have pocketed a quarter of the 37.4% excess return. Daring to drink the water of the emerging markets funds could prove to be little more than a way to tap into Montezuma’s revenge. But history tells us that investors who discount the rewards are as prone to disappointment … ETF Trends and ETF Database , the preeminent digital platforms for ETF news, research, tools, video, webcasts, native content channels, and more.

In the same report you can also find a detailed bonus biotech stock pick that we expect to return more than 50% within months. We initially share this idea in October 2018 and the stock already returned more than 150%. Families who pack up the car this Fourth of July weekend will spend much less on gasoline than last year — prices are down by more than a third from last summer.

Grab These ETFs to Ride the Latest Rally in Oil Prices

View charts that break down the influence that fund flows and price had on overall assets. Transparency is how we protect the integrity of our work and keep empowering investors to achieve their goals and dreams. And we have unwavering standards for how we keep that integrity intact, from our research and data to our policies on content and your personal data. But uncertainty about the OPEC+ deal, chances of higher output and the resurgence of the delta variant of Covid have made the space a winner. Oil prices declined more than 2% on Jul 14 after major global oil producers clinched a deal about supply, which gives cues of oversupply concerns. Oil prices increased considerably on Sep 5 as OPEC+ producers agreed a small oil output cut.

The United States Oil Fund® LP (USO) is an exchange-traded security whose shares may be purchased and sold on the NYSE Arca. Specifically, USO seeks for the average daily percentage change in USO’s net asset value, for any period of 30 successive valuation days, to be within plus/minus 10% of the average daily percentage change in the price of the Benchmark Oil Futures Contract over the same period. The United States Oil Fund was issued on April 10, 2006, by the United States Commodity Fund. The fund’s investment objective is to provide daily investment results corresponding to the daily percentage changes of the spot price of WTI crude oil to be delivered to Cushing, Oklahoma.

The daily changes are measured by the daily percentage changes in the price of near-month WTI crude oil futures contracts traded on the NYMEX. If the front-month futures contract is approaching two weeks until its expiration date, the WTI crude oil futures contract expiring the following month is the fund’s benchmark. USO invests primarily in futures contracts for light, sweet crude oil, other types of crude oil, diesel-heating oil, gasoline, natural gas, and other petroleum-based fuels.

The parameters for USO’s investment discretion are set forth and discussed in detail in USO’s prospectus. USO can change such parameters if regulatory requirements, market conditions, liquidity requirements or other factors make it necessary for USO to do so. USO’s portfolio holdings, as well as its investment intentions with respect to the type and percentage of investments in USO’s portfolio, are disclosed daily on the portfolio holdings page of the website.

USO invests primarily in listed crude oil futures contracts and other oil-related contracts, and may invest in forwards and swap contracts. These investments will be collateralized by cash, cash equivalents, and US government obligations with remaining maturities of 2 years or less. The Fund seeks to have the changes in percentage terms of the units’ net asset value reflect the changes in percentage terms of the price of light, sweet crude oil delivered to Cushing, Oklahoma, as measured by the changes in the average of the prices of 12 Futures Contracts. Contango occurs when the price of a futures contract on an underlying asset is above its expected future spot price. Since the front-month futures contracts are cheaper than those expiring further out in time, the futures curve is said to be upward-sloping. This causes negative roll yields because investors will lose money when selling the futures contracts that are expiring and purchasing further dated contracts at a higher price.