USOUUnited States 3x Oil Fund
USOU Fund Description
USOU provides daily 3x leveraged exposure to front-month NYMEX futures contracts on WTI crude oil.
USOU Factset Analytics Insight
Like all daily-reset leveraged ETPs, USOU 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 exposure over the long-term. USOU 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, USOU 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’ UWT (an ETN). USOD is USOU’s 3x-short counterpart, while unlevered oil exposure can be had from sibling USO.
USOU CHARTS AND PERFORMANCE
USOU Factset Analytics Block Liquidity
This measurement shows how easy it is to trade a $1 million USD block of USOU. USOU is rated a 5 out of 5.