OIL ETFs

[tom2019]

Does anybody know of an oil etf that tracks the price of oil 1:1( minus fees and what not)? I'm looking to hold oil long term, talking years not weeks or months. Struggling to find something that isn't geared or leveraged. Does such a thing even exist?

[anonymous-user]

USO is pretty close https://www.etf.com/USO

[vindaloo79]

Nice question and that link Led to an interesting article:

https://www.etf.com/sections/features-and-news/oil...

[tom2019]

Thanks for those links makes interesting reading.

Even that fund has some interesting stipulations such as:

USO is structured as a commodities pool, so expect a K-1 at tax time. Long-term holders will be taxed on any gains even if they didn’t sell shares.


I've looked at pluss 500 and the overnight charge is 0.0067%

So 365 x 0.0067 = 2.43%

That's seems awfully cheap.

Then it's geared to 10 to 1 so if I buy 10 units I put enough money in to cover 100 barrels of oil so I never get margin called. Seems to good to be true.

[anonymous-user]

Why not just go directly with CL?

https://www.cmegroup.com/trading/energy/crude-oil/...

or, on a smaller scale, QM

https://www.cmegroup.com/trading/energy/crude-oil/...

[jonah35]

JPJPJP said:

USO is pretty close https://www.etf.com/USO

Google contango