USOUnited States Oil Fund LP
USO Fund Description
The United States Oil Fund holds near-month NYMEX futures contracts on WTI crude oil.
USO Factset Analytics Insight
USO, among the largest and most liquid oil ETPs available, delivers its exposure to oil using near-month futures. USO's huge asset base waves away any hint of closure risk, and its massive liquidity makes trading a snap. USO gets exposure to oil using derivatives, like all oil ETPs. Derivative returns can vary greatly from spot oil prices, but spot oil is uninvestable. USO holds front-month futures contracts on WTI, rolling into the next contract every month, just like our segment benchmark. This method is particularly sensitive to short-term changes in spot prices, but can also result in heavy roll costs. That makes USO a great vehicle for riding short-term moves in crude prices, but long-term holders may want to look at other options.
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. Alternatively, investors could also consider OIL, which follows the same strategy in an ETN wrapper. In all, USO does a great job of capturing the performance of the near-term oil futures market at a low all-in cost, earning it our Analyst Pick designation.
USO CHARTS AND PERFORMANCE
USO Top 10 Holdings [View All]
USO Summary Data
USO Portfolio Data
USO Index Data
USO Portfolio Management
USO Tax Exposures
USO Fund Structure
USO Factset Analytics Block Liquidity
This measurement shows how easy it is to trade a $1 million USD block of USO. USO is rated a 5 out of 5.
USO SECTOR BREAKDOWN
USO TOP 10 TARGETED COMMODITY WEIGHTS[View All]
USO Tenor Strategy
USO invests solely in front-month futures contracts. This means that the fund will be particularly sensitive to changes in spot prices, but may be priced higher or lower than spot, sometimes dramatically.
USO Rolling Strategy
USO is rolled over the course of four days.
USO Performance Statistics
Options Strategies for Outcome Investing
A collar strategy is a protective option strategy constructed by writing a call and buying a put with the same expiration date while being long the underlying security.
A covered call is an income strategy constructed by writing a call option against a holding of the underlying security.