How the USO Oil ETF Failed Its Shareholders

There's no shortage of ups and downs in the markets lately, and the volatility isn't limited to stocks. Some other financial markets have seen even more turbulence, with the crude oil market in particular being a focal point for issues ranging from the coronavirus pandemic to geopolitical tensions between OPEC and Russia.

Supply gluts and demand disruptions led to plunging crude oil prices, and many investors hoped that by investing in the United States Oil Fund (NYSEMKT: USO), they'd be able to benefit from a recovery in oil. What fund investors have gotten instead is a rude awakening of what can happen when a commodity-tracking ETF has to take drastic measures to ensure its own survival. Even as crude has rebounded, U.S. Oil Fund shares remain far below where they traded just a month ago.

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Source Fool.com