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Oil prices have fallen below the consensus OPEC+ corridor. Yet, oil price ‘puts' from OPEC+ and the Strategic Petroleum Reserve remain intact. With geopolitical premium fading as well, oil futures trackers like OILK screen favorably as a cheap portfolio hedge.
ProShares K-1 Free Crude Oil Strategy ETF (OILK) invests in oil futures and suffers from NAV decay due to rolling futures contracts. The fund's distributions are unpredictable and it is not recommended for long-term holding or income. With oil prices near the top of 2-year range, there might not be much upside left in oil prices in the short term.
OILK is an exchange traded fund that provides a retail investor with exposure to WTI crude prices. OILK has a better structure than the more liquid United States Oil Fund.
I have been mildly bearish on oil prices since January 2023 and that view has played out in the markets. But now some important developments have changed my stance. OPEC+'s 1.65 million barrels per day surprise production cut is bullish for oil prices.
FAQ
- What is OILK ETF?
- Does OILK pay dividends?
- What stocks are in OILK ETF?
- What is the current assets under management for OILK?
- What is OILK average volume?
- What is OILK expense ratio?
- What is OILK inception date?