Starting next week, individual investors will be able to bet directly on oil. An exchange-traded fund tracking crude-oil prices will make its debut on the American Stock Exchange
on Monday, The Wall Street Journal
The U.S. Oil Fund LP
, which will trade under the ticker symbol "USO," will be managed by registered commodity pool operator Victoria Bay Asset Management LLC
of Alameda, California.
The ETF's initial share price will be equivalent to the price of the bellwether oil contract traded at the New York Mercantile Exchange and should track it closely after, the report said, quoting portfolio manager John Hyland
Everyday investors have so far only been able to bet on the commodity indirectly. This despite a bull market that saw oil prices more than tripling since 2001. The array of options currently available to these investors have been limited mainly to energy-focused mutual funds or shares in major energy firms such as Exxon Mobil Corp.
The U.S. Oil Fund
has yet to secure the approval from the Securities and Exchange Commission, according to the report, citing people familiar with the matter.
A slew of ETF offerings that will going up against the U.S. Oil Fund
are in the pipeline, among them an ETF product from Barclays Global Investors
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