The United States Oil Fund (USO) is 10 years old today. Launched in 2006 by Oakland based investment manager, United States Commodity Funds, USO propelled the firm into the exchange traded fund (ETF) market with the first oil and first single-commodity ETF. Over the years -- and after eleven additional investment products -- the company has become known as USCF.
"USO permanently changed the investment landscape by giving Main Street investors the ability to trade crude oil alongside professional traders," says John Love, President and Chief Executive Officer of USCF. "Since 2006, USO has become a benchmark for energy volatility as well as actual, investable returns in crude oil."
Prior to USO's launch, it was difficult to observe actual returns to crude oil because the futures contracts underlying such an investment are quoted without factoring in the costs that often exist to "roll" those contracts forward. Similarly, changes in spot oil prices do not include costs to store, transport, or insure barrels of oil. By trading and rolling futures contracts, USO traces a path that an investment in crude oil looks like in the real world.
The strategy has proved popular in the marketplace. The fund is consistently one of largest commodity ETFs and one of the most liquid stocks among all types of listings. USO was recently named one of the "15 Most Important ETFs" by ETF.com.
"USCF is very proud to celebrate the 10 year anniversary of USO, our first ETF," says Love, "and we look forward to launching more groundbreaking products in the years to come."