AMF

The Hidden Leverage of Oil ETFs

Interesting and detailed analysis but it does not solve the problem of investing when crude oil is in contango (or super contango as it was 2-3 weeks ago). Have you looked or consider other alternatives such USL or UOY? USL was devised to mitigate the ravages of contango, or negative roll yield, on crude oil futures returns (USL's price is based upon the average of the nearest 12 delivery months of NYMEX crude oil futures). UOY, which represents an economic interest in ¼ of barrel, was created as symmetrical pair with DOY (short) derives its value form each other and doesn't own futures contracts, it does use the front month contract to set the reference price for determining the NAV.

Thx

AMF