Why USL Beats USO In The Battle Of Oil ETFs

Trading more than 30 million shares a day, the United States Oil ETF (NYSEARCA:USO) is easily the most popular proxy for traders wishing to trade on oil prices. That doesn't necessarily mean that the fund does a good job of it. The price of a barrel of WTI crude oil is up nearly 17% year to date but the U.S. Oil ETF is down about 8%.

 

The high cost of futures contract trading along with contango in the oil futures market make this fund less than ideal for a holding period any longer than a few days.

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