The United States Brent Oil Fund (NYSEArca: BNO), which tracks Brent crude oil futures, has traded slightly lower over the past two weeks. Since the start of the current quarter, traders have poured $1 billion into USO and $12.1 million into BNO. [A Boost for Oil ETFs]
Year-to-date, USO and BNO have added nearly $1.8 billion and almost $69 million in new assets, respectively.
The futures market is currently trading in contango, which reflect a state of oversupply in oil where the price of later dated contracts are higher than the spot price. For futures-based ETFs, the widening contango could eat away at long-term returns as the fund rolls front contracts set to expire for the next month contract. [Widening Contango Could Cut Into Popular Oil ETF’s Returns]
United States Oil Fund
