July was the worst month for oil prices since the financial crisis. The price of WTI crude plunged 21% during the month, the worse single-day decline since 2008. Unfortunately, July was also the month that saw record inflows from retail investors into ETFs that track the price of oil. Last month investors poured $821 million into the United States Oil Fund ETF, which tracks the performance of WTI crude, according to ETF.com. That’s not bad for a fund with $2.5 billion in assets. Further, the VelocityShares 3X Long Crude Oil ETN (UWTI), a leveraged instrument that aims to provides three…
Oil ETFs Devour Cash As Retail Investors Try To Pick A Bottom
Sign up now and get our in-depth FREE e-books on famous investors like Klarman, Dalio, Schloss, Munger Rupert is a committed value investor and regularly writes and invests following the principles set out by Benjamin Graham. He is the editor and co-owner of Hidden Value Stocks, a quarterly investment newsletter aimed at institutional investors. Rupert owns shares in Berkshire Hathaway. Rupert holds qualifications from the Chartered Institute For Securities & Investment and the CFA Society of the UK. Rupert covers everything value investing for ValueWalk