Saturday, January 10, 2015

Oil Investors Pour Most Money Into Funds in 4 Years !

Investors poured the most money in more than four years into funds that track crude oil on speculation prices will rebound from a five-year low. The four biggest oil exchange-traded products listed in the U.S. received a combined $1.23 billion in December, the most since May 2010, according to data compiled by Bloomberg. 

Another $109.9 million was added this month through Jan. 5. Investors are piling into oil ETFs even after West Texas Intermediate crude, the U.S. benchmark, tumbled the most since 2008 last year amid signs of rising supply and weak demand. Shares outstanding of the four funds surged to the highest since 2009. “Commodity investors can be contrarian investors,” said Matt Hougan, president of San Francisco-based research firm “There are a lot of true believers in the commodity space. 

A lot of people are attached to the idea that oil’s natural price should be $100, not $50.” The U.S. Oil Fund (DBO), the biggest oil ETF, attracted $629.9 million in December and $100.4 million so far this month. The fund, which follows WTI prices, dropped 3.9 percent to $18.05 yesterday on the New York Stock Exchange, a record low since its inception in 2006. The number of U.S. Oil Fund shares on loan to short sellers was 3.93 million on Jan. 5, down from as high as 9.53 million last month, data compiled by Markit and Bloomberg show. Source: Bloomberg, Jan 8, 2015 

Below Tables list Of Oil Related ETFs :
Equity (Energy Companies)

Commodity (Futures)

ETF Name
Size in Million
1275.66@31 Dec 2014

446.02@31 Dec 2014
2 times leverage
279.25@31 Dec 2014

144.38@31 Dec 2014
2 times leverage

MLPs (Normally with High Yield)

MLPs (Master Limited Partnership) were designed as a kind of investment pooling vehicle with a specific goal in mind: to pass the income earned in some form of partnership directly to investors. By law, they can only be used for businesses where 90% or more of the revenue is being generated from certain qualifying activities, such as managing natural gas pipelines or storing crude oil—industries that generate steady income streams, but that also require large investments in infrastructure that need to be depreciated over long periods of time. In short, an MLP combines the pass-through tax treatment of a traditional partnership with the public tradability of a stock, much like a real estate investment trust does for the ownership of property… (read more)
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