Bottom-Calling Bets on $4.3 Billion ETF Sour Amid Oil Plunge
- United States Oil Fund tumbles to lowest since 2006 inception
- Crude plunges as traders contend with a historic glut
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Historic turmoil in the oil market is proving painful for investors who just piled into a $4.3 billion energy ETF.
The United States Oil Fund LP, or USO, plunged as much as 12% to hit the lowest since its 2006 inception amid a staggering sell-off in crude. The slide came after investors plowed $1.6 billion into the exchange-traded fund last week -- the best on record. USO said Monday it plans to sell an additional 4 billion of new shares as the ETF approaches its shares outstanding limit, according to a filing with the Securities and Exchange Commission.