ETF Trends
ETF Trends

Investors are starting to see the flip side of oil exchange traded funds (ETFs) as the futures contracts are finally moving away from contango and into backwardation.  Now that oil ETFs are in backwardation, they should earn interest income, giving a 5% return above the spot price, says Matt Hougan for Index Universe. This also means their roll yields are positive. ETFs that invest in futures contracts can be confusing, so make sure you thoroughly understand these tricky types before committing.

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.