ETF Trends
ETF Trends

An exchange traded fund (ETF) that gives investors exposure to gasoline prices has jumped 26% over the past three months with drivers in some U.S. cities paying more than $4 a gallon at the pump.

The national average price of self-serve, regular unleaded gas is $3.76 a gallon, according to the Lundberg Survey.

Gas prices have risen by nearly 20 cents a gallon over the past two weeks on lingering concerns over oil supply disruptions in Libya.

The average price for a gallon of gas in the U.S. is less than 10% below its record high, Reuters reported.

U.S. Gasoline Fund (NYSEArca: UGA) is up roughly 26% year to date.

“This commodity pool, which is marketed as an exchange-traded product, invests in short-dated futures contracts for unleaded gasoline as traded on the New York Mercantile Exchange,” Morningstar analyst Abraham Bailin writes in a recent report on U.S. Gasoline Fund.

“These contracts are typically close, though rarely equal, to spot prices for gasoline,” Bailin said. “Gasoline prices are highly correlated to crude oil, but they are also subject to seasonal volatility and refiner-related capacity issues.”

Oil ETFs were lower Monday morning on reports Muammar Gaddafi has accepted a peace plan to end the conflict in Libya.

U.S. Gasoline Fund

The opinions and forecasts expressed herein are solely those of John Spence, 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.