An ETF for a Wild Oil Market
Summary
Joel Weber and Eric Balchunas discuss USE, an actively managed oil ETF, with guest Andre Yap. They compare it to the popular USO, highlighting USE’s ability to go long or short to potentially reduce volatility. The hosts analyze its performance, tax advantages like avoiding K-1 forms, and the complexities of futures rolling in commodity ETFs.
Topics discussed
Sponsors: Invesco QQQ, ChatGPT, and Cincinnati Insurance
Introduction: The oil ETF theme and a new contender
USO vs. USE: Comparing the popular and the new oil ETFs
How Bloomberg identifies the 'ETF of the Moment'
USE strategy: Active management, long/short, and volatility
Performance analysis: USE vs. USO and WTI returns
Debunking 'Absolute Return': Correlation and market regimes
The dangers of futures rolling and contango explained
Tax implications: K-1 forms and fund structure differences
Outro and sponsors: Optum and ChatGPT for Work
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