USODUnited States 3x Short Oil Fund
USOD Fund Description
USOD provides daily 3x inverse exposure to front-month NYMEX futures contracts on WTI crude oil.
USOD Factset Analytics Insight
Like all daily-reset inverse ETPs, USOD is designed as a trading tool, not a buy-and-hold investment. Holding the fund for longer than a day exposes investors to the effects of compounding, which could mean returns that vary significantly from 3x inverse exposure over the long-term. USOD tracks the front-month WTI crude contract, which provides maximum sensitivity to spot prices but also increases the effects of contango. Holding costs for the fund are steep, but trading costs are more important for this short-term product.As a commodity pool, USOD will issue a K-1 form at tax time. Taxable investors will pay a blended rate on capital gains (60% long-term, 40% short-term), whether those gains are realized or not. The fund competes directly with VelocityShares’ DWT (an ETN). USOU is USOD’s 3x-long counterpart, while unlevered oil exposure can be had from sibling USO.
USOD CHARTS AND PERFORMANCE
USOD Factset Analytics Block Liquidity
This measurement shows how easy it is to trade a $1 million USD block of USOD. USOD is rated a 5 out of 5.