United States Oil Fund Explained

United States Oil Fund
Type:Exchange-traded fund
Industry:Investment management
Key People:John Love (President)
Owner:United States Commodity Funds

The United States Oil Fund is an exchange-traded fund (ETF) that attempts to track the price of West Texas Intermediate (WTI) Light Sweet Crude Oil.[1] [2] It is distinguished from an exchange-traded note (ETN) since it represents an ownership claim on underlying securities that the fund has packaged.[3] USO invests in oil futures contracts that are traded on regulated futures exchanges.[4]

Background

The United States Oil Fund was founded on April 10, 2006, by Victoria Bay Asset Management, now known as United States Commodity Funds,[5] [6] and the American Stock Exchange. The fund opened on its first day of trading at $68.25 per share.[7] [8] USO's investment objective is to include the changes in percentage terms of its units' net asset value (NAV) in its evaluation of the changes in percentage terms of the spot price of light, sweet crude oil as measured by its price on the New York Mercantile Exchange (NYMEX).[9] Its performance is determined by the price of oil through its oil futures contracts.[10] [11]

See also

References

  1. http://unitedstatesoilfund.com United States Oil Fund
  2. Web site: Should Investors Drill for Oil ETFs? - Focus on Funds - Barrons.com. Barron's.
  3. Book: Jones. Gerald. Investments: Analysis and Management. Johnson. Charles. John Wiley & Sons. 2016. 978-1-118-97558-9. Hoboken, NJ. 60. en.
  4. Book: Woods, Jennifer. The Active Asset Allocator: How ETF's Can Supercharge Your Portfolio. Penguin. 2009. 978-1-101-16311-5. en.
  5. Web site: Victoria Bay Changes Name Institutional Investor . www.institutionalinvestor.com . dead . https://web.archive.org/web/20170217143156/http://www.institutionalinvestor.com/article/1961582/Research/4025/Overview.html . 2017-02-17.
  6. Web site: USO - USCF Investments.
  7. Web site: USO Historical Quote - United States Oil Fund LP.
  8. When comparing historical prices, account for an 8-to-1 reverse-split on April 28, 2020. Share values after that date may be compared to 8 shares from before that date.
  9. Book: Commission, United States Securities and Exchange. SEC Docket. 2012. Securities and Exchange Commission. 3575.
  10. Book: Rhoads, Russell. Trading VIX Derivatives: Trading and Hedging Strategies Using VIX Futures, Options, and Exchange-Traded Notes. John Wiley & Sons. 2011. 978-1-118-11848-1. Hoboken, NJ. en.
  11. Web site: 2020-04-27. USO ETF pushes oil futures exposure out to June 2021. 2020-07-04. ETF Strategy. en-US.

External links

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