OOO - Betashares Crude Oil Index ETF - Currency Hedged (Synthetic)

[jbocker]

Can you hold OOO shares long term? If i buy OOO today, can i hold it for the next 5 years for example?

I held shares OOO from Late Jan 2015 to mid Feb 2020. just over 5 years. I luckily got rid of them in Feb. Distributions over last couple of years was what was hoped for and a return to their original price ($50 range, which was prior to my purchase). Not a profitable investment bought 200 at $23+ sold at $13+. My first ETF.

 

[aus_trader]

Agree with you guys @qldfrog/@jbocker, not a long term instrument. I can understand the attraction to the ETF than individual shares of Oil companies for example, but OOO is not a good tool to speculate on Oil price based on my real past experience also.

 

[HelloU]

(i have not read back so this comment may be way off or already said)
FUEL is an etf for the companies rather than the commodity.

 

[qldfrog]

(i have not read back so this comment may be way off or already said)
FUEL is an etf for the companies rather than the commodity.

true and as such a slightly different but in my opinion better play on oil; But I also believe it is edged???so may be a plus, in my opinion a minus when aud is at 70c

 

[aus_trader]

true and as such a slightly different but in my opinion better play on oil; But I also believe it is edged???so may be a plus, in my opinion a minus when aud is at 70c

Yes, currency hedged. But still this is an ETF that holds actual stocks rather than the Oil futures that has rollover problems which is the case with OOO.

 

[qldfrog]

Yes, currency hedged. But still this is an ETF that holds actual stocks rather than the Oil futures that has rollover problems which is the case with OOO.

But are you not better off buying an equivalent, a la Duc, on the NYSE?
why do you edge an oil ETF with the AUD at 70c? Just in case it reaches 80c in 3 months?
Agree otherwise, FX excluded, I would prefer using FUEL to OOO by far

 

[Smurf1976]

why do you edge an oil ETF with the AUD at 70c? Just in case it reaches 80c in 3 months?

The logic would be if someone wanted exposure to the oil price only, without any exposure to currency movement.

If someone has a view on the oil price going up, but has no real knowledge or interest of currencies, then that would make sense.

 

[aus_trader]

But are you not better off buying an equivalent, a la Duc, on the NYSE?

Yes, if the currency hedging was to be taken out of the equation. Something like NYSE listed
Vanguard Energy ETF (VDE).

 

[pavilion103]

Been following closely.
I purchased $10,000 of the OOO ETF on the ASX @ 2.90 (as mentioned in another thread).
Now it's around 3.85 and should continue up on Monday following the WTI performance Friday night.

Watched closely and saw the super contango disappear.

With WTI at 39.55, I'm expecting some consolidation from here.

Will continue to monitor closely.

 

[pavilion103]

The difference between July20 and Jan21 contract is only 90c.
A far cry from the super contango.

 

[frugal.rock]

Now it's around 3.85 and should continue up on Monday following the WTI performance Friday night.

I have it on good standing, that your prediction is DOOMED.
In fact, I will wager every cent I have on the matter.

 

[aus_trader]

In fact, I will wager every cent I have on the matter.

Don't do it, but I agree

 

[frugal.rock]

Too late.
Bets on! Guess we'll find out "soon" haha.

Enjoying your Public holiday anyone?

 

[qldfrog]

No

Too late.
Bets on! Guess we'll find out "soon" haha.

Enjoying your Public holiday anyone?

Test for the wicked here in qld

 

[aus_trader]

Too late.
Bets on! Guess we'll find out "soon" haha.

Enjoying your Public holiday anyone?

Yeah, places open finally. Have to queue up but worth the meals and drinks !

Parks and reserves are packed, have to wait around just to get a BBQ and seating spot. I think everyone is glad to be out and about over the long weekend.

 

[pavilion103]

I have it on good standing, that your prediction is DOOMED.
In fact, I will wager every cent I have on the matter.

Well when you put it like that lol...

Care to elaborate?
You anticipating a storage issue?

Edit: hahaha the penny just dropped!!
Public Holiday
Yes. I woke today thinking, I would look a bit silly on the ASF..

I guess you win the “wager”

 

[frugal.rock]

Drinks are on me...
Schooners, jug, pots, pints of crude for all !

 

[pavilion103]

Over $4

 

[frugal.rock]

One could consider there's still plenty of overhead space for OOO.
ETF's are gaining popularity as they are generally considered as a more stable method of exposure.
Take out the the correlation between OOO and oil, looking at the TA side, what's the current trend?
Up.
Oil correlation, I suspect, will show its hand, in its own time.
I don't hold, but am intending to once some equity becomes available.
F.Rock

 

[frugal.rock]

I've changed my opinion.
If I traded oil, I'd be going short now faster than a rabbit down the hole... (rabbit down the hole is the gold safe haven analogy)
Oil inventorys are peaking. Way over estimates. India is nearly chockers as is the US.
Expecting US Weekly Production figure overnight, am expecting another big (bigger?) drop. Has to be.
Still have absolutely no idea about futures though. Not my area.
Loving the investing.com site
@Joe Blow .
Good move.
https://m.au.investing.com/news/com...ries--rose-17m-barrels--last-week-api-2144203
and
https://m.au.investing.com/news/commodities-news/oil-snaps-3day-rally-on-crude-build-worries-2144136

Reminds me of my cousin years ago, pretending with my first mobile phone (brick)...
He mashes some buttons...beep boop bip beeeep, (ringing the broker)...
"Yep, buy gold, sell oil" ... never forgotten that, was funny as.

Now, trading 23 years later, it seems like he might have made the right call...

https://www.aussiestockforums.com/threads/oil-price-discussion-and-analysis.797/page-133