MutualFundWire.com: Why Oil ETFs are Not Investor Darlings
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Tuesday, March 11, 2008

Why Oil ETFs are Not Investor Darlings


In Tuesday's WSJ Fund Track column Gregory Meyer gets to the bottom of why investors' interest in oil ETFs has been lukewarm at best. Meyer writes that one reason may be the uneven performance due to two situations that occur in futures trading, contango and backwardation. The former caused long-only oil ETFs to underperform in the first six months of 2007, the latter caused them to outperform in the last six months. Meyer also mentions that some investors may be wary of ETFs that focus on a narrow sector such as oil.


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