OILK Profile
The
Crude Oil Strategy K-1 Free ETF (OILK) is an exchange-traded fund that
seeks to provide investors with exposure to crude oil prices. The ETF
is designed to track the performance of the S&P GSCI Crude Oil
Enhanced Roll Index, which seeks to provide exposure to the price of
WTI crude oil futures contracts. Here's an extended company report for
the Crude Oil Strategy K-1 Free ETF:
The OILK ETF was launched
in 2017 and is traded on the NYSE Arca under the ticker symbol OILK.
The ETF is designed to track the S&P GSCI Crude Oil Enhanced Roll
Index, which seeks to provide exposure to the price of WTI crude oil
futures contracts.
The index uses a rules-based methodology to
select and roll over WTI crude oil futures contracts. The index seeks
to mitigate the negative impact of contango, which is a market
condition where futures contracts with later expiration dates trade at
a higher price than contracts with earlier expiration dates. The index
does this by selecting contracts with the lowest implied cost of carry
and rolling over contracts on a monthly basis.
The OILK ETF
aims to provide investors with exposure to crude oil prices without
the tax complexities associated with direct investments in futures
contracts. The ETF is structured as a Regulated Investment Company
(RIC) and is designed to be K-1 free, meaning that investors do not
need to deal with the tax implications of K-1 forms when investing in
the ETF.
As of March 18, 2023, the OILK ETF had a net asset
value of approximately $168 million and a total expense ratio of
0.79%. The fund has a diversified portfolio of holdings, with the top
10 holdings comprising approximately 75% of the portfolio. Some of the
top holdings include WTI crude oil futures contracts and cash and cash
equivalents.
Investing in the OILK ETF involves significant
risks, including the risk of volatility in crude oil prices, the risk
of regulatory changes that may impact the oil industry, and the risk
of changes in the creditworthiness of the counterparties involved in
the ETF. As such, investors should carefully consider the risks and
potential benefits of investing in the OILK ETF before making any
investment decisions.
In conclusion, the Crude Oil Strategy K-1
Free ETF seeks to provide investors with exposure to crude oil prices
by tracking the S&P GSCI Crude Oil Enhanced Roll Index, which seeks to
provide exposure to the price of WTI crude oil futures contracts. The
ETF is designed to be K-1 free, and investors do not need to deal with
the tax implications of K-1 forms when investing in the ETF. The OILK
ETF involves significant risks that should be carefully considered
before making any investment
|
