This ETF offers 2x daily leverage to an index that consists of crude oil futures contracts, making UCO a powerful tool for expressing a bullish outlook on energy prices. … For sophisticated investors with a fair amount of tolerance for risk and volatility, this ETF can be a very powerful tool.
What does UCO stock track?
The Fund seeks daily investment results (before fees and expenses) that correspond to twice (200%) the daily performance, whether positive or negative, of its corresponding benchmark, the Dow Jones – AIG Crude Oil Sub-Index. The Underlying Index is designed to track crude oil futures prices.
What future does UCO follow?
UCO is an ETF that seeks to provide daily investment results that are 2x the daily performance of the Bloomberg Commodity Balanced WTI Crude Oil Index. The fund utilizes laddered futures contracts and total return swaps. Some large banks and commodities traders expecting oil to hit $100/barrel in 2022.
What stocks are in UCO ETF?
Top 8 Holdings (200.02% of Total Assets)
|Wti Crude Future Nov21||N/A||39.37%|
|Bloomberg Wti Crude Oil Balanced Swap – Ms||N/A||20.62%|
|Bloomberg Wti Crude Oil Balanced Swap – Gs||N/A||16.84%|
|Bloomberg Wti Crude Oil Balanced Swap – Ubs||N/A||16.73%|
Why is UCO so low?
Structural Changes. One of the biggest reasons that USO and UCO crashed was their 100% exposure to the nearest-term oil futures contract. … After a series of changes, they now own futures contracts with expirations as much as one year out into the future, while owning zero nearest-term contract at all.
What is in crude oil?
Crude oil is a mixture of comparatively volatile liquid hydrocarbons (compounds composed mainly of hydrogen and carbon), though it also contains some nitrogen, sulfur, and oxygen. Those elements form a large variety of complex molecular structures, some of which cannot be readily identified.
Is UCO a good ETF?
As a geared product, UCO is designed for a one-day holding period, it’s not appropriate for buy-and-hold investors. Daily compounding can lead to the fund’s returns varying significantly from those of the index over holding periods of greater than one day. UCO is a great choice for a leveraged energy play.
Is UCO leveraged?
UCO fits aptly into the family of leveraged oil-focused ETFs. Yet unlike competing products such as ERX and GUSH, UCO is a commodities pool made up almost entirely of CL futures contracts of different expiries.
When did UCO reverse split?
As a result of the reverse stock split, each UCO share will be converted into the right to receive 0.04 (New) ProShares Ultra Bloomberg Crude Oil share. The reverse stock split will become effective before the market open on April 21, 2020.
What are USO holdings?
Top 5 Holdings (113.23% of Total Assets)
|FidelityÂ® Inv MM Fds Government Instl||FRGXX||21.56%|
|Goldman Sachs FS Government Instl||FGTXX||15.50%|
|Morgan Stanley Instl Lqudty Govt Instl||MVRXX||1.78%|
|United States Treasury Bills||N/A||1.60%|
What is UCO oil?
ProShares Ultra Bloomberg Crude Oil seeks daily investment results, before fees and expenses, that correspond to two times (2x) the daily performance of the Bloomberg Commodity Balanced WTI Crude Oil Index.
Is UCO a good long-term investment?
But UCO shouldn’t ever be found in a long-term, buy-and-hold portfolio; it’s simply too risky, and the nuances of this fund make it likely to lose money over the long run regardless of changes in spot oil prices, thanks to the damaging impact of contango.
Is Gush expected to rise?
“GUSH” fund predictions are updated every 5 minutes with latest exchange prices by smart technical market analysis. … Based on our forecasts, a long-term increase is expected, the “GUSH” fund price prognosis for 2026-12-02 is 305.858 USD. With a 5-year investment, the revenue is expected to be around +207.3%.