USO Fund Description

The United States Oil Fund holds near-month NYMEX futures contracts on WTI crude oil.

USO ETF.com Insight

USO, the largest and most liquid ETP in the segment, delivers exposure to oil using near-month futures. USO's $700M in assets waves away closure risk, and its massive liquidity makesthe largest and most liquid ETP in the segment trading a snap. Like all oil ETPs, USO gets exposure to oil prices using derivatives. (For investors new to oil, such exposure can cause fund returns to vary greatly from spot oil prices. No fund matches the returns of spot oil.) USO uses front-month futures contracts on WTI, just like our segment benchmark. This method is particularly sensitive to volatility in expectations about short-term supply and demand. USO is a great vehicle for riding short-term moves in expected crude prices, but longer-term holders take on heavy roll risk. Roll costs can be steep when the curve is up-sloping. USO's all-in costs are lowest in the segment. (Insight updated 07/24/2014)

1 Year
Performance [as of 10/20/14] 1 Month 3 Month YTD 1 Year 3 Years 5 Years 10 Years
USO -9.92% -17.44% -11.83% -14.57% -2.25% -5.08% --
USO (NAV) -9.88% -17.73% -11.68% -14.82% -2.17% -5.16% --
All returns over 1 year are annualized. All returns are total returns unless otherwise stated.

USO Top 10 Contracts

USO Summary Data

US Commodity Funds

A company that produces and manages ETFs.

04/10/06

The first date of a fund's operations, as documented by the issuer.

Commodities Pool

The organizational structure of the fund or ETN.

0.72%

The net total annual fee a fund holder pays to the issuer.

$732.03 M

The market value of total assets that a fund has accumulated and now manages on behalf of investors.

$186.96 M

It is the daily dollar value of shares traded, averaged over the past 45 trading days.

0.03%

The difference between the highest price a market participant is willing to pay to buy an ETF and the lowest price at which a market participant is willing to sell an ETF, averaged over the past 60 days, as a percent.

USO Portfolio Data

Futures

This details how the fund accesses its commodities, whether holdings are physically–held or futures based.

Front Month

Rolling strategy is the process by which a fund deals with contract expiration.

N/A

How often a fund rebalances its holdings back to the stated target weights in the prospectus.

-14.80%

This is the weighted average decay of all contracts held by a fund, calculated from the current contract to the current front month contract.

-14.77%

This is the weighted average decay of all contracts held by a fund, calculated from the current contract to each holding's preceding contract.

1

The number of single commodities represented in the fund holdings.

USO Index Data

Front Month Light
Sweet Crude Oil

This is the benchmark an ETF is desigend to track or replicate.

Single Asset

A set of rules that the underlying index provider follows to weight its constituent securities.

Single Asset

A set of rules that the underlying index provider follows to select its constituent securities.

S&P GSCI Crude Oil

This is the index that we have chosen as the best-in-class gauge for each segment's broad market.

Related ETFs to USO

DBO, USO, OLEM, OIL, CRUD

ETFs from within the same segment or closely related segments with similar investment objectives or market exposures.

USO ETF.com Efficiency Insight

USO charges 72 bps, making it one of the cheaper options in its segment. Judging by AUM, investors like the low price tag—USO leads all segment funds in assets, almost $700M. At tax time, expect a K-1, with a blended long-term/short-term rate. (Insight updated 07/24/2014)

Total Return - 07/24/2014
Performance [as of 07/24/14] 1 Month 3 Month YTD 1 Year 3 Years 5 Years 10 Years
USO -3.25% 2.08% 7.08% 1.12% -0.96% 0.87% --
USO (NAV) -3.26% 2.05% 7.36% 0.96% -0.99% 0.88% --
Front Month Light Sweet Crude Oil -- -- -- -- -- -- --
S&P GSCI Crude Oil -3.23% 2.13% 7.46% 1.16% -0.39% 1.48% -2.95%
All returns over 1 year are annualized. All returns are total returns unless otherwise stated.

USO Portfolio Management

0.72%

The net total annual fee a fund holder pays to the issuer.

-0.77%

Compares returns of the fund's NAV to its underlying index for a daily series of overlapping 12 month periods. The median is the middle value of the results.

-0.66%

Largest deviation in a positive direction of a fund's returns vs. its underlying index over the past 12 months.

-0.86%

Largest deviation in a negative direction of a fund's returns vs. its underlying index over the past 12 months.

USO Tax Exposure

27.84% / 27.84%

The maximum long-term and short-term U.S. tax rates applicable to a realized capital gain.

--

The average capital gains paid out to shareholders in the past 36 months, measured as a percent of net asset value (NAV) at the time.

Yes

ETFs that are structured as commodities pools and classified as limited partnerships by the IRS will issue K-1 forms to holders.

USO Fund Structure

Commodities Pool

The organizational structure of the fund or ETN.

No

An indicator of whether a fund uses over-the-counter derivatives such as swaps or forwards to achieve its objectives.

N/A

An indicator of whether or not a fund actively lends its portfolio holdings.

N/A

The institution responsible for providing the return of the stated index and whose credit is the sole backing of the ETN.

N/A

The risk of default by the ETN counterparty.

Low

The likelihood that an issuer will shut down a fund for business or regulatory reasons.

Daily

The frequency of an issuer's disclosure of all fund holdings.

USO ETF.com Tradability Insight

Investing in commodities can be tricky, but trading USO is easy and cheap for investors of all stripes. Retail investors will benefit from very tight spreads (3 bps) and massive volume (more than $100M most days). Institutions working with liquidity providers can also expect extremely low transaction costs and daily volume that exceeds 30 creation units. (Insight updated 07/24/2014)



Average Spread
Premium/Discount
Volume

USO ETF.com/ Block LiquidityAs of 10/21/2014

5
4
3
2
1

This measurement shows how easy it is to trade 25,000 shares of USO. USO is rated a 5 out of 5.

USO Tradability

5,580,797

It is the daily number of shares traded, averaged over the past 45 trading days.

$186.96 M

It is the daily dollar value of shares traded, averaged over the past 45 trading days.

4,323,780

Median number of shares traded over the past 45 trading days.

$149.89 M

Median dollar value of shares traded over the past 45 trading days.

0.03%

The difference between the highest price a market participant is willing to pay to buy an ETF and the lowest price at which a market participant is willing to sell an ETF, averaged over the past 45 days, as a percent.

$0.01

The difference between the highest and lowest posted prices for an ETF, averaged over the past 45 days, in dollars.

-0.03%

The middle value in the ranked set of all premium/discount values over a maximum 12-month period.

0.85% / -0.84%

The greatest amount that the market price exceeded (premium) and fell below (discount) its fair value/net asset value (NAV) over a maximum 12-month period.

None

This flags whether there is currently a systemic issue that has restricted the ability to create or redeem shares of the fund. This may be imposed by the fund's issuer, or by external circumstances.

100.00%

The percent of time that the underlying securities of an ETF are open to trading while US exchanges are open.

100,000

The smallest block of ETF shares that an Authorized Participant can either create or redeem at net asset value (NAV) with the issuer in exchange for the underlying shares of the fund.

43.24

The median 45 day share volume divided by the creation unit size of the fund. The higher the number, the more likely that liquidity providers will trade the fund in size, or in odd lots.

0.03%

The standard fee to create or redeem 1 creation unit of an ETF as a percentage of the dollar value of 1 creation unit.

1,418,356

The total number of net outstanding options contracts for an ETF.

$31.09

The total market value of the assets that an ETF holds less fund expenses.

5

An estimate of liquidity for the underlying baskets of securities, scaled 1 to 5.

USO ETF.com Fit Insight

USO gets exposure to WTI oil prices via front-month futures contracts. This simple structure exactly matches our benchmark, but retail investors should know that the fund doesn’t track spot oil, which is uninvestable. Recent returns of both the fund and our benchmark have lagged those of some peer funds due to contango, a trend that may continue based on our forward estimate of decay. (Insight updated 07/24/2014)

USO Sector Breakdown

USO Segment Benchmark
100.00% 100.00%

0.00% 0.00%

0.00% 0.00%

0.00% 0.00%

0.00% 0.00%

USO Top 10 Contracts

USO Performance Statistics

1.00

The degree to which the fund and its segment benchmark move up and down in unison.

1.00

The sensitivity of the returns of the fund to the movement of the ETF.com segment benchmark. Beta of 1.0 means magnitude of fund returns equals that of IU benchmark returns.

1.00

The comparison of a fund's return to our benchmark's for days when the benchmark is up. Ideally down beta is less than up beta while beta of 1.0 means they're equal.

1.00

The comparison of a fund's return to our benchmark's for days when the benchmark is down. Ideally down beta is less than up beta while beta of 1.0 means they're equal.

0.01%

A measure of the variability between the fund's returns and the ETF.com segment benchmark returns on days when the fund underperforms the benchmark.

USO Top 5 Collateral Investments

No data available

USO Expected Decay

USO Segment Benchmark
CommodityWeightDecay
to Front
Decay to
Preceding
CommodityWeightDecay
to Front
Decay to
Preceding
Crude Oil100.00%-14.77%-14.77%Crude Oil100.00%0.00%0.00%
Weighted Average
Expected Decay:
Weighted Average
Expected Decay:

Expected Decay: Decay-to-front measures the annualized price difference between the price of a futures contract and the current front-month futures price for the commodity. Decay-to-front shows the annualized expected cost (appreciation) should the front month price not change between now and contract expiration. We annualize this cost to make it uniform for all contract months. Decay-to-preceding similarly measures the annualized price difference between a futures contract and the contract before it on the curve and shows the annualized expected cost (appreciation) should the spot prices and the shape of the curve remain intact. The figures are presented as decay, so a negative number implies an expected gain and a positive number implies an expected loss. Front month positions are evaluated against the next available contract ahead of it on the curve.

Term Structure