ETF Spotlight on United States Commodity Brent Oil Fund (NYSEARCA:BNO), part of a weekly series.
Assets: $13.7 million.
Objective: BNO aims to track the price of Brent oil by owning futures contracts.
Holdings: The portfolio consists of futures for Brent crude oil.
What You Should Know
- As if this writing, BNO owns 133 futures contracts on Brent crude, which expire in April.
- When owning commodity funds, it’s helpful to know when they will roll contracts forward; here’s BNO’s roll schedule.
- BNO charges a 0.75% expense ratio.
- Why another oil ETF? Brent crude oil is the second-most liquid commodity futures contract after West Texas intermediate and it’s another way to get exposure.
- This fund is thinly-traded, so watch the spread when trading it and use limit orders.
The Latest News
- Brent crude prices have surged as a result of widespread protests in the Middle East, which rose 5% today alone.
- BNO is one of the top-performing futures-based oil ETFs lately.
- Brent supplies are already very tight, and it has been estimated that the loss of production has been roughly one-half to one-third of daily output, says CNBC.
Click to enlarge