SZODB Crude Oil Short ETN
SZO Fund Description
SZO tracks the performance of a futures contract on light sweet crude oil determined to be least impacted by contango.
SZO Factset Analytics Insight
SZO is, like most leveraged and inverse products, designed to provide -1x exposure to its index only with its monthly reset period. Investors holding it beyond the next monthly reset date will be subject to the effects of compounding—a dynamic that can cause the note’s performance to drift from its promised -1x exposure. The note’s index tracks a single futures contract on light sweet crude oil determined to be least influenced by contango. The index measures the changes in price of the oil futures contract, the returns from rolling those contracts over, and the cost of borrowing (collateral) as measured by the 3-month Treasury bill. Although its 75 bp fee is entirely reasonable compared with other inverse products, trading costs are of greater importance, since SZO is designed for round-trip intraday trading. To that end, the market for SZO is both shallow and wide, with very little trading volume, at too-wide spreads. Investors interested in inverse oil ETPs will find better liquidity in DNO or DTO.
SZO CHARTS AND PERFORMANCE
SZO Portfolio Data
SZO Index Data
SZO Fund Structure
SZO Tax Exposures
SZO Factset Analytics Block Liquidity
This measurement shows how easy it is to trade a $1 million USD block of SZO. SZO is rated a 5 out of 5.