Although the exchange traded fund (ETF) U.S. Oil Fund (USO) has been down most of the year, it’s climbing back up as the price of oil continues to rise. USO invests in oil futures and is up 7.8% year-to-date. However, USO has received criticism because it hasn’t reflected the price of oil as was originally intended.
As oil prices and demand for oil increase, USO and oil supply companies should benefit. To offset your pain at the pump, there are several oil-related ETFs available. Before selecting oil ETFs, research its makeup as futures contracts are different than your typical investments. Ensure it fits with your portfolio and investment strategy.
The opinions and forecasts expressed herein are solely those of Tom Lydon, and may not actually come to pass. Information on this site should not be used or construed as an offer to sell, a solicitation of an offer to buy, or a recommendation for any product.