More specifically, daily changes, in percentage terms, of fund units' net asset value (NAV) should reflect daily changes, also in percentage terms, "of the spot price of light, sweet crude oil, as measured by the changes in price of the futures contract on light, sweet crude oil traded on the NYMEX that is the near month contract to expire, except when the near month contract is within two weeks of expiration, in which case it will be measured by the futures contract that is the next month contract to expire ... less USO's expenses."Benefits of the ETF include the fact that it is a vehicle to "hedge crude oil movements or take directional positions on oil prices" and that it allows investors to gain "commodity-like exposure without using a commodity futures account." At close of day on Tuesday, shares of the United States Oil Fund were trading at $35.64 each. The fund has risen 5.86 percent in the past month. Horizons NYMEX Crude Oil ETF In contrast to the United States Oil Fund, the Horizons NYMEX Crude Oil ETF is denominated in Canadian dollars, and, rather than tracking West Texas Intermediate Crude, "seeks investment results ... that endeavour to correspond to the performance of the NYMEX light sweet crude oil futures contract for the next December delivery month," as per its fact sheet. The intention is for the fund's NAV to gain about as much, on a percentage basis, "as any increase in the NYMEX light sweet crude oil futures contract for the next December delivery month when the NYMEX light sweet crude oil futures contract for the next December delivery month rises on a given day." At close of day on Tuesday, shares of the Horizons NYMEX Crude Oil ETF were trading at $10.91 each. The fund has risen 2.04 percent in the past month.
Securities Disclosure: I, Charlotte McLeod, hold no direct investment interest in any company mentioned in this article. Watch These 2 ETFs During Crude Oil's Seasonal "Sweet Spot" from Oil Investing News