USO invests primarily in listed crude oil futures contracts and other oil-related contracts, and may invest in forwards and swap contracts. These investments will be collateralized by cash, cash equivalents, and US government obligations with remaining maturities of 2 years or less.
Is USO a good stock to buy?
Over the long term, the negative roll yields add up, causing United States Oil Fund investors to experience losses. Therefore, investors planning to gain exposure to the oil market over the long term should avoid investments in the United States Oil Fund.
Is USO an ETF?
Category Commodities Energy
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Portfolio Style Commodities
Fund Status Open
Fund Inception
Managers Gerber Love Hyland
Is USO ETF a good buy?
With national lockdowns off the table and positive data on a vaccine likely imminent, now is a good time to buy the United States Oil Fund ETF (NYSE:USO). Further, in 2021 oil demand is expected to rebound meaningfully, making the USO ETF a very good choice for longer-term investors as well.
Name Symbol % Assets
-------------------------------------- ------ --------
Fidelity® Inv MM Fds Government Instl FRGXX 21.56%
Goldman Sachs FS Government Instl FGTXX 15.50%
Morgan Stanley Instl Lqudty Govt Instl MVRXX 1.78%
United States Treasury Bills N/A 1.60%
Will USO recover?
In this case, the yield on the call is 17.3% over the life of the trade (about 20 months). That's not a bad yield in this environment, even over 20 months. If you are willing to take a chance that USO could recover to some extent by 2022, this is a reasonably safe trade to make.
Why is USO stock dropping?
In April 2020, crude oil prices collapsed amid the COVID-19 pandemic to 20-year lows. In late April, the price of USO dropped more than 30% to just above $2 per share and new trades were halted as the fund's managers began making structural changes in efforts to avoid a complete collapse.
What is USO ETF?
The United States Oil Fund (USO) is an exchanged-traded product (ETP) that seeks to provide investment results corresponding to the daily price movements of West Texas Intermediate (WTI) light, sweet crude oil.