Energy traders can look to a new exchange traded note to track a recovery in West Texas Intermediate crude oil futures or capitalize on market moves with two new master limited partnership-related ETNs.
Credit Suisse has launched the X-Links WTI Crude Oil Index ETN (NYSEArca: OIIL), according to a press release. OIIL has a 0.55% expense ratio.
“OIIL’s annual fee rate is 0.55% and its fees are applied in a ‘non-path-dependent’ manner, where each day’s fee is simply the ETN’s value multiplied by the daily prorated amount of the annual fee rate,” Paul Somma, Head of Exchange Traded Notes at Credit Suisse, said in the press release.
The WTI oil ETF will track the Bloomberg WTI Crude Oil Total Return Subindex, which is comprised of West Texas Intermediate crude oil futures contracts.
Potential investors should be aware that since the ETN tracks futures contracts, and not the spot price, traders are exposed to the negative effects of contango when the ETN rolls contracts set to expire. [Positioning for an Oil ETF Rebound? Watch For Contango.]