Tag Archives | USO

Dealing with Contango

Investing in commodities has been made much easier by the advent of exchange traded funds.  However, one issue that has been a drag on returns and has investors scratching their heads is contango. Contango, and its opposite number — backwardation, occurs in funds that track commodity prices with futures contracts.  Since the contracts have a […]

Looking for Hidden Taxes

When it comes to taxes, not all ETFs are created equal.  That’s the message in Jason Zweig‘s latest column Watch Out for Hidden Tax Traps Inside ETFs. Zweig writes that commodity and currency ETFs are taxed differently than funds that invest in stocks or bonds.  As a result, investors may owe taxes on unrealized capital […]

Oil ETF Returns Watered Down

ETFs that are supposed to track the spot price of oil have underperformed this year. In the column Exchange-Traded Funds Miss Oil Gusher, the WSJ’s John Jannarone writes that although oil prices have soared 51% this year, the largest oil ETF, U.S. Oil Fund (USO), has risen 8%. USO attempts to track the spot price […]

Inflation and ETFs

Exchange traded funds can play an important role in protecting a portfolio against inflation according to John Spence‘s article Whip Inflation with ETFs. Spence writes that using specialized exchange-traded funds to guard portfolios against inflation is becoming popular in light of massive government spending to combat the economic recession and the prospect of a weaker […]

Are ETFs Driving Commodity Prices?

John Hyland, CIO of U.S. Commodity Funds, is one of several people expected to testify on Wednesday at a Commodity Futures trading commission hearing on the issue of speculation. The question to be answered, according to WSJ reporter Carolyn Cui, is whether commodity ETFs are influencing the price of the futures they are designed to […]

Oil ETF Changes Renewal Policy (USO)

Just a week after we posted Oil ETF is Moving the Market, the $3.4 billion U.S. Oil Fund LP (USO) has said it will renew expiring crude futures positions over the course of four days each month. The current practice is to renew expiring positions in one day. However, the fund’s rapid growth has resulted […]

Oil ETF is Moving the Market

Can an ETF be too big? That’s the question raised by the WSJ‘s Carolyn Cui. In the article Huge Oil Fund Rolls Positions, Roils Market, Crude Price, Cui writes that the United States Oil Fund (Ticker: USO) rolled its positions on Friday into the subsequent month. The $3.3 billion fund accounts for about 22% of […]

ETF Flows Provide Early Indicator of Market Trends

Monitoring the flow of money into ETFs can provide an early indication of the next market trend. That’s the conclusion of MarketWatch‘s John Spence in his blog post Greenlight’s Einhorn buying options on gold-miners ETF. Spence reports that hedge fund manager David Einhorn is buying call options on the Market Vectors Gold Miners ETF (GDX) […]

Keeping a Toe in Commodities

Smart Money’s Rob Wherry recently examined the logic of maintaining commodities exposure in the midst of a major pullback. The article “Keep a Toe in Commodities Despite Pullback” points out that there are two themes that have been influencing the prices of all kinds of commodities: New emerging middle classes around the globe, and rising […]

Powered by WordPress. Designed by Woo Themes