Costs of Oil Price Exchange-Traded Funds Diminish Usefulness

4 Pages Posted: 5 May 2017

See all articles by Sung Je Byun

Sung Je Byun

Federal Reserve Bank of Dallas - Banking Supervision

Date Written: 2017

Abstract

Crude oil exchange-traded funds (ETFs) are investments designed to track oil price changes. They bear unique costs of which many investors are unaware. Since the first crude oil ETF went to market in April 2006, these costs have been sizable, reducing ETF returns by 1.33 percent per month on top of the average monthly loss of 0.23 percent attributable to weak oil prices.

Suggested Citation

Byun, Sung Je, Costs of Oil Price Exchange-Traded Funds Diminish Usefulness (2017). Economic Letter, Vol. 12, Issue 5, pp. 1-4, 2017, Available at SSRN: https://ssrn.com/abstract=2962912

Sung Je Byun (Contact Author)

Federal Reserve Bank of Dallas - Banking Supervision ( email )

2200 North Pearl Street
PO Box 655906
Dallas, TX 75265-5906
United States
214-922-5660 (Phone)

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