We highlight bullish call buying in the options market that coincides with a recent price run up in the largest (in terms of assets under management) Crude Oil based ETF, U.S. Oil Fund (NYSEArca: USO), in our options recap this morning.
USO has been around since 2006 and now has approximately $1.3 billion in AUM and trades nearly 9 million shares per day on average.
PowerShares DB Oil (NYSEArca: DBO) is the second largest Crude Oil futures based ETF, having amassed over $600 million in assets under management and trading more than a half a million shares per day.
However, today we highlight one of the least known ETFs in the Crude Oil space, Teucrium WTI Crude Oil Fund (NYSEArca: CRUD) which is relatively new to the ETF landscape.
The fund launched in February of 2011, and the index methodology was designed specifically to mitigate the effects of contango and backwardation that are present in the futures markets typically.
Thus, holders of USO for instance over the long term since 2006, have noticed a significant disconnect in the real returns generated by the ETF versus the actual spot price movements of Crude Oil the commodity itself.