US Oil fund ETF failed to cash in on crude’s 2016 rally

According to Bloomberg, one of group of investors that did not benefit from 2016’s big crude rally is the world’s most popular oil fund ETF.

Front-month WTI futures have gained 45% so far this year on OPEC oil output cut deal, while the US Oil Fund LP, an ETF designed to track oil prices only grew 6.6% over the same period.

Matt Hougan, chief executive officer of Inside ETFs in San Francisco noted, “USO’s been hit with the contango ugly stick. Despite the solid price appreciation in spot crude, investors have not been rewarded much because the roll has been costly.”