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How Contango Could Affect A Popular Oil ETF

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To say the United States Oil Fund LP (ETF) (NYSE: USO), which tracks West Texas Intermediate crude oil futures, is a flawed product is accurate and fair. Over the past three years, USO is down 77.1 percent, but the exchange-traded product remains a favorite, on both sides of the oil trade, of professional traders.

Inflows to USO confirm as much. After adding nearly $3.1 billion in new assets last year, USO has seen year-to-date inflows of almost $900 million. USO's 2016 inflows put it just outside of the year's top 10 asset-gathering ETFs.

USO And Contango

Perhaps the greatest source of criticism against USO comes from the fact that the ETF is frequently in contango. As it pertains to USO, contango occurs when ...

/www.benzinga.com/news/16/02/6246307/how-contango-could-affect-a-popular-oil-etf alt=How Contango Could Affect A Popular Oil ETF>Full story available on Benzinga.com

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