Troubled Oil ETF Again Shuffles Holdings Amid Market Mayhem
- USO moves further out the oil futures curve for second day
- ETF has plunged nine straight days amid epic rout in crude
Photographer: Bing Guan/Bloomberg
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For a second straight day, the biggest oil exchange-traded fund reshuffled the mix of futures it owns to track crude prices, extending their average expiration amid unprecedented volatility in its markets.
The $3-billion United States Oil Fund LP (USO) took the measure in an effort to reduce its holdings in near-term contracts that have borne the brunt of losses as the global coronavirus lockdown saps demand for oil amid a supply glut. The fund, which is the biggest single owner of West Texas crude futures, moved more of its money into contracts expiring in August and September while reducing June and July.