United States 12 Month Oil Fund LP (USL)

ETF United States 12 Month Oil Fund LP (USL) Summary

Profile:

USL is an exchange-traded fund (ETF) that tracks the performance of the Bloomberg 12-Month WTI Crude Oil Subindex Total Return. It invests in oil futures contracts with maturities of approximately 12 months. USL seeks to provide investment results that, before expenses, closely track the price and yield performance of the underlying index.

Objective:

The primary investment goal of USL is to provide investors with exposure to changes in the price of oil on a passively managed basis.

Issuer:

USL is issued by United States Commodity Funds LLC, a subsidiary of Teucrium Trading LLC.

• Reputation and Reliability: Teucrium is a well-established commodity ETF issuer with a strong reputation for delivering innovative and cost-effective investment products.
• Management: The ETF is managed by an experienced team with extensive expertise in the commodity markets.

Market Share:

USL holds a dominant position in the 12-month oil ETF market, with a market share of approximately 90%.

Total Net Assets:

As of October 27, 2023, USL has total net assets of approximately $140 million.

Moat:

USL's competitive advantages include:

• Unique Strategy: It is the only ETF that offers exposure to the 12-month oil futures market.
• Cost-Effectiveness: USL has a low expense ratio of 0.65%.
• Liquidity: USL is a highly liquid ETF with an average daily trading volume of over 200,000 shares.

Financial Performance:

USL has performed well in recent years, outperforming the Bloomberg WTI Crude Oil Spot Index by an average of 2.5% per year over the past three years.

Growth Trajectory:

The demand for oil is expected to continue to grow in the coming years, with the global economy increasingly relying on fossil fuels. This should support the growth of USL's net assets and performance.

Liquidity:

• Average Trading Volume: 200,000 shares
• Bid-Ask Spread: 0.05%

Market Dynamics:

The performance of USL is primarily driven by the price of oil, which is influenced by various factors such as:

• Global economic growth
• OPEC production decisions
• Geopolitical events

Competitors:

• VDE: VelocityShares VIX ETN
• USO: United States Oil Fund LP
• BNO: United States Brent Oil Fund LP

Expense Ratio:

0.65%

Investment Approach and Strategy:

• Strategy: Track the Bloomberg 12-Month WTI Crude Oil Subindex Total Return.
• Composition: Invest in oil futures contracts with maturities of approximately 12 months.

Key Points:

• Dominant market share in the 12-month oil ETF space.
• Strong track record of performance.
• Low expense ratio.
• Highly liquid.

Risks:

• Volatility: Oil prices are inherently volatile, which can lead to significant fluctuations in the value of USL.
• Market Risk: USL is exposed to the risk of changes in the price of oil, which can be affected by various factors such as global economic growth, OPEC production decisions, and geopolitical events.

Who Should Consider Investing:

• Investors seeking exposure to the oil market without actively managing their investment.
• Investors with a short-term investment horizon.
• Investors who are comfortable with the volatility associated with oil prices.

Fundamental Rating Based on AI:

7/10

USL has a strong fundamental rating based on its dominant market share, strong track record of performance, low expense ratio, and high liquidity. However, it is exposed to the volatility associated with oil prices.

Resources and Disclaimers:

• USL Fact Sheet: https://www.teucrium.com/fund/united-states-oil-fund/
• Bloomberg: https://www.bloomberg.com/quote/USL:US
• Yahoo Finance: https://finance.yahoo.com/quote/USL/

Disclaimer: This information is for educational purposes only and should not be considered investment advice. Please consult with a financial professional before making any investment decisions.