USO vs. OIL: Which Is the Better Crude Oil ETF?

Michael Johnston submits:United States Commodity Funds, the company behind several of the largest futures-based exchange-traded commodity products, added a new fund to its lineup this week. The United States Brent Oil Fund (BNO) began trading on Wednesday, becoming the eighth product offered by USCF.

Michael Johnston submits:One of the hottest segments of the ETF industry is the commodity space, which has exploded in recent years as investors have embraced exchange-traded products as a means of reaching an asset class that offers potentially valuable diversification benefits. While most commodity products are physically-backed or futures-based funds, an alternative means of gaining commodity exposure has become increasingly popular among ETF investors.

Michael Johnston submits:As storm clouds continue to gather over the eurozone, the repercussions of a rise in uncertainty have been felt in nearly every corner of the global economy. All assets denominated in euro have fallen out of favor. Financial stocks with exposure to European debt have been sold off. Even South American emerging markets have been battered by a wave of risk aversion as investors seek out the security of safe havens.

In bull markets, it’s good to see investors rotate in and out of different stocks. Some sectors establish themselves as market leaders for a while. As a rally progresses, you’ll begin to see profit taking on some of these names, prompting traders to look elsewhere for strong momentum moves. Of course, it’s a sign of a healthy rally when you see this “market of stocks” environment. It’s great for traders, too — mainly because there’s always a stock out there that’s in play or ready to make a big move.

OPEC will probably keep its output quota unchanged for a second successive meeting next week as members judge prices high enough to cover their spending needs, according to a Bloomberg survey.

By Tom Lydon: Oil exchange traded funds are up for the year with crude prices rising above $110 a barrel at one point in February. Gas prices have surged early this year before the summer driving season, and investors are worried about tensions in the Middle East. The higher energy prices could stifle the economic recovery, says the S&P, but energy traders may capitalize on the momentum through oil-related exchange traded funds.

Michael Johnston submits:Morgan Stanley has rolled out a new ETN that combines access to large cap U.S. equities with exposure to a futures-based investment in crude oil. The new S&P 500 Crude Oil Linked ETN (BARL) will offer returns of the S&P 500 Oil Hedged Index.

Michael Johnston submits:Teucrium, the firm that debuted the only pure play corn ETF last year and recently added a natural gas fund, announced the launch of its third exchange-traded product today. The Teucrium WTI Crude Oil Fund (CRUD) offers exposure to futures contracts for WTI crude oil, also known as Texas Light Sweet Crude Oil, traded on the NYMEX.