New York Oil ETF in review

Barron's draws attention to the world of commodity based ETFs and the role they might play in pricing.  Concerning this blog are the ETFs linked to crude oil.   Macro Securities Research LLC has registered an ETF that will track the price of Brent crude oil prices.  In the United States a small fund, Ameristock Funds, registered New York Oil ETF in May of this year.  According to articles we have read the registration process takes about a year.   

The New York Oil ETF will track light sweet crude oil (WTI) as it trades on the NYMEX.  It was only a matter of time before someone would figure out how to get the retail investor involved in the red hot oil market.  We used to say that buying a group of E&Ps and/or oil service names would basically create a commodity proxy as the correlation between the commodity and equity would usually be high. 

The middle man is being eliminated and now the question that arises, is what effect could this have on commodity prices once we have new player involved.   Morningstar is not very impressed by the group that is going to manage the New York Oil ETF.    An article with some basic overview of the fund can be found on the Standard & Poor's web site.   

Here is an overview of the fund from the S-1:

The New York Oil ETF, a

Delaware

limited partnership (the “Fund