We are welcoming another addition to the growing family of ETFs. United States Commodity Funds, the provider of popular energy-focused ETFs, has launched a new oil-related ETF that will track the second-most liquid commodity futures contract in the world.
The United States Brent Crude oil Fund, LP (BNO) started trading this week. The fund will try to reflect the daily changes in the spot price of Brent Crude Oil, the second most liquid commodity futures contract after West Texas Intermediate, as traded on the IntercontinentalExchange (ICE) Futures Exchange that is the near month contract to expire. BNO has an expense ratio of 0.75%
BNO’s portfolio will mainly be made up of futures contracts for crude oil heating oil, gasoline, natural gas and other petro-based fuels that are traded on the ICE Futures Exchange, the New York Mercantile Exchange (NYMEX) or other U.S. and foreign exchanges. The fund may also invest in “Other Crude Oil-Related Investments.”
The benefits of this fund include:
- Hedge Brent Crude Oil movements or take directional positions on oil prices.
- Provide exposure to oil with the convenience of trading an ETF and without using commodity futures accounts.
- BNO also discloses Market Price, NAV and Portfolio Holdings on a day-to-day basis.
Max Chen contributed to this article.