December Could be Unkind to This Oil ETF

“Of the ETFs we track, DBO tends to fare the worst in the month of December, averaging a loss of 2.21% over the past decade, according to data from Schaeffer’s Senior Quantitative Analyst Rocky White. What’s more, the fund has ended the month higher just half the time over the past 10 years,” according to Schaeffer’s Investment Research.

If DBO’s December track record is repeated this year, that would dent the fund’s recent impressive showing.

“DBO shares have been on a tear since their June bottom, rallying nearly 33%. The ETF was last seen trading at $9.79 — up 0.1% on the day, and within a chip-shot of its Jan. 3 high of $9.91. Further, DBO recently turned positive year-to-date for the first time nearly all year. However, another 2.21% drop from current levels would put the fund around $9.57 — back in the red year-to-date,” notes Schaeffer’s.

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