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That's going to cost a fortune, currently the jun/sep calendars are trading at $11.70 !!
OOO - Betashares Crude Oil Index ETF - Currency Hedged (Synthetic)
- Thread starter peter2
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That's going to cost a fortune, currently the jun/sep calendars are trading at $11.70 !!
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Negative mate,
It's going to cost the fund dearly to roll those contracts, but I guess it's already been priced into the ETF price ?? Dunno you tell me...
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As I said, these ETFs are trading at a premium to NAV.
You can see here https://www.betashares.com.au/fund/oil-etf-betashares/ the iNAV is 2.812 and closing price is 2.96 so aside from spread and ridiculous fees+swap costs for FX hedging, you're paying 5.26% above NAV.
Now the fund is going to sell whatever Jun WTI futs they have for $15 and buy Sep futs $26. If, for example, the fund holds 100 Jun WTI contracts, they will soon be holding just 57 Sep WTI contracts.
I don't think that will get priced in until they actually roll and the NAV reflects it.
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Thanks mate,
Good info, now I've got a reason to break out the webiress !
Good info, now I've got a reason to break out the webiress !
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Smells a bit toxic
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Doh
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Very helpful IB.
Thank you most graciously for your assistance in helping Mule's like me further their understanding of spinning wheels.
Cheers.
F.Rock
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Oil +20pc overnight ooo -5pc
:-(
:-(
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NAV down from yesterday, probably the cost of rolling positions last night, quite a bit of volume traded !
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I wouldn't be surprised if this ETF ends up being wound up in due couse.
All of a sudden the problems seem to have come to widespread attention - it's being discussed on non-financial forums too, it's not something that has come to the attention only of those with a keen interest it's more widespread than that.
That being so, who's buying any significant volume?
All of a sudden the problems seem to have come to widespread attention - it's being discussed on non-financial forums too, it's not something that has come to the attention only of those with a keen interest it's more widespread than that.
That being so, who's buying any significant volume?
PZ99
( ͡° ͜ʖ ͡°)
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Relevent article ):
Aussie ETF investors got oil bets wrong before crash
BY KANIKA SOOD | THURSDAY, 23 APR 2020 4:39PM
Australians last week poured $35 million in the country's only ETF tracking crude oil futures, and were stung hard when WTI May contracts slipped into negative territory in Monday's trading.
BetaShares Crude Oil Index ETF (OOO) tracks an index composed of WTI crude oil future contracts, focusing on shorter-dated deliveries, and is the only such ETF exposure in Australia.
Last week, OOO attracted the second-highest inflows of all ETFs in Australia (second to a shorting ETF), as investors put in net $35 million, likely expecting oil prices to stabilise after the recent OPEC deal to cut down production by 30% in the wake of an oversupply.
On Monday, May WTI futures contracts slipped into negative territory for the first time, as COVID-19 shutdowns continue to bog down demand and traders run out of space to store oil.
It's not only Australian investors that were caught wrong footed on the direction of WTI futures.
In the US, investors poured over US $1 billion into the United States Oil ETF (USO), Bloomberg reported.
Oil prices' crash has made OOO the worst-performing ETF for all listed on the ASX. It ended Friday down nearly -70% since the start of the year, as well as on a 12-month basis.
On Thursday, BetaShares announced the ETF will replace its exposure to future contracts with one-month maturities (June for the ETF, as it doesn't have May exposure) to three-month maturities (September) as it sees the risk of June contracts trading at negative prices.
"While this change can be expected to temporarily result in a higher level of tracking error for fund performance relative to the index than otherwise would be the case (as the index will continue to reflect the one-month contract), BetaShares considers that the longer-dated future contract should have lower volatility, and that exposure to it should reduce the risk of the fund and unitholders experiencing a permanent loss of capital," it said
"Given the high level of risk in the global oil markets, investors should nevertheless exercise caution."
Aussie ETF investors got oil bets wrong before crash
BY KANIKA SOOD | THURSDAY, 23 APR 2020 4:39PM
Australians last week poured $35 million in the country's only ETF tracking crude oil futures, and were stung hard when WTI May contracts slipped into negative territory in Monday's trading.
BetaShares Crude Oil Index ETF (OOO) tracks an index composed of WTI crude oil future contracts, focusing on shorter-dated deliveries, and is the only such ETF exposure in Australia.
Last week, OOO attracted the second-highest inflows of all ETFs in Australia (second to a shorting ETF), as investors put in net $35 million, likely expecting oil prices to stabilise after the recent OPEC deal to cut down production by 30% in the wake of an oversupply.
On Monday, May WTI futures contracts slipped into negative territory for the first time, as COVID-19 shutdowns continue to bog down demand and traders run out of space to store oil.
It's not only Australian investors that were caught wrong footed on the direction of WTI futures.
In the US, investors poured over US $1 billion into the United States Oil ETF (USO), Bloomberg reported.
Oil prices' crash has made OOO the worst-performing ETF for all listed on the ASX. It ended Friday down nearly -70% since the start of the year, as well as on a 12-month basis.
On Thursday, BetaShares announced the ETF will replace its exposure to future contracts with one-month maturities (June for the ETF, as it doesn't have May exposure) to three-month maturities (September) as it sees the risk of June contracts trading at negative prices.
"While this change can be expected to temporarily result in a higher level of tracking error for fund performance relative to the index than otherwise would be the case (as the index will continue to reflect the one-month contract), BetaShares considers that the longer-dated future contract should have lower volatility, and that exposure to it should reduce the risk of the fund and unitholders experiencing a permanent loss of capital," it said
"Given the high level of risk in the global oil markets, investors should nevertheless exercise caution."
Well, I hope the comeback is greater than the setback for current investors.
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It's a mugs game at the moment.
The situation is no where near resolved.
If this ETF survives until oil supply demand situation is properly on the mend, I may be interested then.
Weeks minimum, more likely months.
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I bought that parcel at 2.55 as a gamble, but i used to use this etf with substantial amount in the past.i was luckily out of oil when the fall happened but the disconnect between poo and this etf, even going into different direction is a no go for me now and a clear warning about similar ETFsIt's a mugs game at the moment.
The situation is no where near resolved.
If this ETF survives until oil supply demand situation is properly on the mend, I may be interested then.
Weeks minimum, more likely months.
I am long oil mid, long term and bought XOM Exxon, BP and amza on the US market after the fall
