Oil prices have soared to their highest levels in many years due to geopolitical tensions in Europe and the Middle East. We’d like to share more about how we work and what drives our day-to-day business. A long-running debate in asset allocation circles is how much of a portfolio an investor should… 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. Here is a look at ETFs that currently offer attractive short selling opportunities. The following charts reflect the geographic spread of
USO’s
underlying holdings.

While oil may be appealing, USO often suffers from severe contango making the product more appropriate for short-term traders. USCI, USO, USL, BNO, UNG, UNL, UGA, and CPER are commodity pools regulated by the Commodity Futures Trading Commission. These Funds, which are ETPs, are not mutual funds or any other type of Investment Company within the meaning of the Investment Company Act of 1940, as amended, and are not subject to regulation thereunder.

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 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.

In fact, it has been pretty much an even split between gains and losses for the S&P 500 during these periods, and the most significant move was a strong stock rally during 2019, the most protracted shutdown in our data set. In addition to possibly straining the household finances of government employees, some economic data collection would be suspended. A shutdown means the employment report, inflation readings like CPI, and GDP measurement could be impacted. The length of shutdown would determine if some of these reports are just delayed or skipped entirely. Since it is a private company, the ADP employment report is not impacted.

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. According to Strategas, stocks have not been significantly impacted by government shutdowns in the past.

• Major exchange-traded funds pegged to moves in crude oil are on track for their biggest weekly gain in more than a year, boosted as OPEC unexpectedly reached a deal to cut production – a move that could address the commodi…
• According to Strategas, stocks have not been significantly impacted by government shutdowns in the past.
• 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.
• This chart shows how a hypothetical investment of $10,000 in the Fund at its inception would have performed versus an investment in the Fund’s benchmark futures contract(s).

The United States Oil Fund® LP (USO) is an exchange-traded security whose shares may be purchased and sold on the NYSE Arca. USO’s investment objective is for the daily changes, in percentage terms, of its shares’ net asset value (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 Oil 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. 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. 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.

United States Oil Fund LPUSO:US

The overall stock market is not likely to be impacted by a shutdown, while companies with considerable exposure to government spending could see a negative impact. United States Oil Fund LP is a Delaware limited partnership incorporated in the USA. The Fund’s objective is to have changes in percentage terms of its unit’s net asset value reflect the changes of the price of WTI Crude Oil delivered to Cushing, Oklahoma, as measured by changes in percentage terms of the price of the WTI Crude Oil futures contract on the NYMEX. The good news is that government shutdowns have typically been reasonably short, with an average of 8 days and a median of 4.

Government regulation and taxation Investments held in U.S. government securities and money market instruments can suffer losses. This chart shows how a hypothetical investment of $10,000 in the Fund at its inception would have performed versus an investment in the Fund’s benchmark futures contract(s). The values indicate what $10,000 would have grown to over the time period indicated. The hypothetical example does not represent the returns of any particular investment. While some political rhetoric has stated that a shutdown risks sending the country into an economic downturn, history does not support that conclusion. In the only two quarters with a decline in GDP accompanying a shutdown, the U.S. economy had already entered into a recession in the previous quarter.

Turnover provides investors a proxy for the trading fees incurred by mutual fund managers who frequently adjust position allocations. Dow Jones Industrial Average, S&P 500, Nasdaq, and Morningstar Index (Market Barometer) quotes are real-time. This site is protected by reCAPTCHA and the Google
Privacy Policy and
Terms of Service apply. View charts that break down the influence that fund flows and price had on overall assets. Oil prices increased considerably on Sep 5 as OPEC+ producers agreed a small oil output cut. Politics has become so interwoven with finance that you need a degree in politico-economics to get investing in this market right.

• PAST PERFORMANCE IS NOT NECESSARILY INDICATIVE OF FUTURE RESULTS.
• The “A+ Metric Rated ETF” field, available to ETF Database Pro members, shows the ETF in the Oil & Gas with the highest Metric Realtime Rating for each individual field.
• USO’s investment objective is for the daily changes, in percentage terms, of its shares’ net asset value (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 Oil Futures Contract.
• To view information on how the ETF Database Realtime Ratings work, click here.
• 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.

The adjacent table gives investors an individual Realtime Rating for USO on several different metrics, including liquidity, expenses, performance, volatility, dividend, concentration of holdings in addition to an overall rating. The “A+ Metric Rated ETF” field, available to ETF Database Pro members, shows the ETF in the Oil & Gas with the highest Metric Realtime Rating for each individual field. 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.

gas prices will average 50 cents less per gallon than 2022, but expect to pay this at the pump come May

These events severely limited USO’s ability to have a substantial portion of its assets invested in the Benchmark Oil Futures Contract. Accordingly, on April 17, 2020, USO commenced investing in oil futures contracts other than the Benchmark Oil Futures Contract, consistent with its authority to do so pursuant to its prospectus. USO invests primarily in listed crude oil futures contracts and other oil-related contracts, and may invest in forwards how to trade oil 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.

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The Morningstar Medalist Ratings are not statements of fact, nor are they credit or risk ratings. A change in the fundamental factors underlying the Morningstar Medalist Rating can mean that the rating is subsequently no longer accurate. 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.

USO Valuation

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. Investment in small companies generally experience greater price volatility. The amount of the discount or premium in the trading price of USO relative to USO’s NAV per share may be influenced by various factors including, among other things, the number of investors who seek to purchase or sell shares in the secondary market and the liquidity of the oil futures.

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 Faithful Finance disclosed daily on the portfolio holdings page of the website. Exchange-traded funds that let investors bet on energy prices and stocks are among the most popular offerings judging by their considerable trading volume, but some of these funds have been slammed by the severe correction…

Shares of the funds that are exchange-traded products (ETPs) or exchange-traded funds (ETFs) are not individually redeemable and owners of any Shares may acquire those Shares from the Funds and tender those shares for redemption to the Funds in Creation Unit aggregations of 25,000, Advanced forex trading 50,000 or 100,000 Shares. 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.

Can Oil ETFs Extend its Winning Streak for First Time Since June’22?

In addition, Social Security payments will be made with no interruption. National security personnel and essential Federal employees must work but will not be paid. The White House determines which jobs are “essential,” and all non-essential government employees would be furloughed without pay. Get this delivered to your inbox, and more info about our products and services.

In addition, economic releases from the Federal Reserve and the Department of Labor’s weekly unemployment claims would be produced without interruption. This financial data could prove crucial as the Federal Reserve wrestles with monetary policy with elevated inflation while trying to avoid recession. 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. Major exchange-traded funds pegged to moves in crude oil are on track for their biggest weekly gain in more than a year, boosted as OPEC unexpectedly reached a deal to cut production – a move that could address the commodi…