Quantcast
The MFWire
Manage Email Alerts | Sponsorships | About MFWire | Who We Are

Subscribe to MFWire.com's News Alerts [click]

Rating:WSJ Delves into the Headaches of One Popular ETF Not Rated 2.0 Email Routing List Email & Route  Print Print
Friday, March 6, 2009

WSJ Delves into the Headaches of One Popular ETF

by: Armie Margaret Lee

The Wall Street Journal devoted an article on Friday to the challenges faced by United States Commodity Funds LLC's (formerly Victoria Bay Asset Management) U.S. Oil Fund, which has grown from $7 million three years ago to $3.8 billion. Due to its size, the ETF is unable to go in and out of contracts without moving markets and providing speculators an opportunity to bet on those moves.

For instance, on February 6, the fund switched its 80,000 contracts from March to April at the end of the trading day. The funds' managers were about to roll the contracts, when suddenly "came the awfully extreme move," The Journal quotes one manager as saying. The price move made it pricier for U.S. Oil to make the switch; it cost the fund roughly $120 million than it would've a day before.

The following week, U.S. Oil complained to New York Mercantile Exchange, an unnamed source told the Journal. The Commodity Futures Trading Commission is investigating the trading.

U.S. Oil last month made a decision to roll contracts over a four-day period rather than in a single day. Whether that will help lessen the impact on the market will be seen Friday, day one of the next roll.  

Stay ahead of the news ... Sign up for our email alerts now
CLICK HERE

2.0
 Do You Recommend This Story?



GO TO: MFWire
Return to Top
 News Archives
2024: Q2Q1
2023: Q4Q3Q2Q1
2022: Q4Q3Q2Q1
2021: Q4Q3Q2Q1
2020: Q4Q3Q2Q1
2019: Q4Q3Q2Q1
2018: Q4Q3Q2Q1
2017: Q4Q3Q2Q1
2016: Q4Q3Q2Q1
2015: Q4Q3Q2Q1
2014: Q4Q3Q2Q1
2013: Q4Q3Q2Q1
2012: Q4Q3Q2Q1
2011: Q4Q3Q2Q1
2010: Q4Q3Q2Q1
2009: Q4Q3Q2Q1
2008: Q4Q3Q2Q1
2007: Q4Q3Q2Q1
2006: Q4Q3Q2Q1
2005: Q4Q3Q2Q1
2004: Q4Q3Q2Q1
2003: Q4Q3Q2Q1
2002: Q4Q3Q2Q1
 Subscribe via RSS:
Raw XML
Add to My Yahoo!
follow us in feedly




©All rights reserved to InvestmentWires, Inc. 1997-2024
14 Wall Street | 20th Floor | New York, NY 10005 | P: 212-331-8968 | F: 212-331-8998
Privacy Policy :: Terms of Use