ETF Spotlight on United States Commodity Brent Oil Fund (NYSEArca: BNO), part of a weekly series.
Assets: $13.7 million
Objective: BNO aims to track the price of Brent oil by owning futures contracts
Holdings: The portfolio consists of futures for Brent crude oil
What You Should Know
- As if this writing, BNO owns 133 futures contracts on Brent crude, which expire in April
- When owning commodity funds, it’s helpful to know when they will roll contracts forward; here’s BNO’s roll schedule
- BNO charges a 0.75% expense ratio
- Why another oil ETF? Brent crude oil is the second-most liquid commodity futures contract after West Texas intermediate and it’s another way to get exposure
- This fund is thinly-traded, so watch the spread when trading it and use limit orders
The Latest News
- Brent crude prices have surged as a result of widespread protests in the Middle East, which rose 5% today alone
- BNO is one of the top-performing futures-based oil ETFs lately
- Brent supplies are already very tight, and it’s been estimated that the loss of production has been roughly one-half to one-third of daily output, says CNBC
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.