Bloomberg data indicate that over the past 18 months, investors have added more than $4.2 billion in new assets to USO.
In the face of the rising global supply glut, investors can utilize a number of inverse or bearish ETF options to hedge against further declining energy prices. For instance, the United States Short Oil (NYSEArca: DNO) tracks the opposite moves of the West Texas Intermediate crude oil futures, and the DB Crude Oil Short ETN (NYSEArca: SZO) also tracks the simple inverse of oil. [Leveraged ETFs Are Popular Plays Among Swing Traders]
“The trader and hedge fund crowds prefer USO because it is the most sensitive ETF to short-term pops in spot oil. It is also very liquid and offers the convenience of rolling the futures for you, although it suffers from severe roll costs if held over the longer term,” according to Bloomberg.
United States Oil Fund
