USO Hasn’t Traded This Low, Ever
United States Oil Fund (NYSEMKT: USO) purchases light, sweet, crude oil futures on behalf of its investors and passively manages itself according to its prospectus. It's tempting to bet that oil prices will rise while its current price is so low. USO can do that for you, but it's important to understand what risks are involved when investing in an ETF that uses futures to derive its value.
Source: Getty Images.
Crude oil has sunk as low as $19 a barrel in recent weeks. Most people who search for ways to invest in oil often find the USO fund as an option. After all, if you were to purchase a barrel of oil at retail price, where would you store it? And if you were to purchase futures in oil, you'd be putting up much more capital than you may be comfortable with.
Source Fool.com
