Quote:
Originally Posted by GGG
Do non-derivative based ETFs carry these death spiral risks. Like a VOO or a fund of funds like VGRO?
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No. The risk for USO is that what they own doesn't stay constant - every month they sell the old futures and buy new ones. VOO owns a static basket of stocks, it only changes when the index rebalances, which isnt often or dramatic.
A better crude oil etf would own physic crude to eliminate this risk, but the cost of storage is quite high.