Will USO be next?
https://www.thestreet.com/etffocus/...est-oil-etns-will-be-shut-down-and-liquidated
The Street said:
https://www.thestreet.com/etffocus/...est-oil-etns-will-be-shut-down-and-liquidated
OIL, One Of The Largest Oil ETNs, Will Be Shut Down And Liquidated
- Thread starter kmiklas
- Start date
It probably will since when developing this etf there was never even a thought or possibility that oil could ever trade negative.
I'm seeing many many etfs being shut down due to the market environment we have encountered, seems like these etfs were never given much thought as what could have happened if a particular scenario played out. Don't you think the ones engineering these type of investment vehicles would have at least taken the initiative to develop a program with mathematical expertise to layout each financial situation possible before releasing these trading tools to the public!!!!
I'm seeing many many etfs being shut down due to the market environment we have encountered, seems like these etfs were never given much thought as what could have happened if a particular scenario played out. Don't you think the ones engineering these type of investment vehicles would have at least taken the initiative to develop a program with mathematical expertise to layout each financial situation possible before releasing these trading tools to the public!!!!
They make their money on the fees and just match oil so they make $ whether oil is up or down.
They will close it and start a new one with crude this low they are guaranteed to have a product that will bring in investors over time and go up so should be quite successful...
They don’t give a shit about the public (most are too stupid or lazy to read wtf they are buying anyway).
The ETF’s/ETN’s make a ton of money for the banks/BD’s that’s all that matters
https://www.cnbc.com/2019/09/04/the...says-he-has-found-the-next-market-bubble.html
Did he spoke about current events ?
Other than that, the professionals on Robin Hood, the so called investing gurus from FIRE movement, invented by millennials,
all of em (those who owned dissapearing ETF's), who thought that one is safe in ETF's with max draw down of 70%~, - now sits home, thinks what da hell just happened, looks at the screen and puts on the song :
(honestly, nothing funny at all, dreams & lifes will be effected, but that's the price of this game)
Did he spoke about current events ?
Other than that, the professionals on Robin Hood, the so called investing gurus from FIRE movement, invented by millennials,
all of em (those who owned dissapearing ETF's), who thought that one is safe in ETF's with max draw down of 70%~, - now sits home, thinks what da hell just happened, looks at the screen and puts on the song :
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So I wonder why they never created a new XIV.
Anyone who puts their money in an ETN is asking for trouble.
Especially the complex ones with monthly rolls, new note creations, etc.
You would think the after hours VIX product carnage in Feb ‘18 would teach people a lesson but they keep coming back for more.
Especially the complex ones with monthly rolls, new note creations, etc.
You would think the after hours VIX product carnage in Feb ‘18 would teach people a lesson but they keep coming back for more.
to be fair etn =/= etf. different products with different risk profiles
etn's largest risk = credit of the issuer and call risk, the second of which is applicable here. often times etn prospectus will outline provisions for closure should the fund experience some level of drawdown, etc, which is exactly what is happening here. CC XIV 2018.
etf's mostly close down due to lack of investor interest. operating margin is already very slim on these so if there is no buyer interest for these instruments the issuer shuts em down. CC multiple wisdomtree ETFs as of recent.
I cant think of any etfs that have closed solely due to putrid performance (someone enlighten me if im wrong?). I suppose anything is possible in today's crazy environment. however USO inflow is at an all time high, and USCF even had to file w SEC to allow them to issue more shares to meet investor demand (as they cannot simply issue shares beyond what initially detailed in their prospectus).
reverse split maybe, but thats not a reflection of the etf health itself simply the dynamic nature of share price due to underlying fundamentals
side note, its crazy how large news outlets publish shit with so many glaring errors re: these products
https://www.barrons.com/articles/how-united-states-oil-fund-got-whipsawed-51587491180
etn's largest risk = credit of the issuer and call risk, the second of which is applicable here. often times etn prospectus will outline provisions for closure should the fund experience some level of drawdown, etc, which is exactly what is happening here. CC XIV 2018.
etf's mostly close down due to lack of investor interest. operating margin is already very slim on these so if there is no buyer interest for these instruments the issuer shuts em down. CC multiple wisdomtree ETFs as of recent.
I cant think of any etfs that have closed solely due to putrid performance (someone enlighten me if im wrong?). I suppose anything is possible in today's crazy environment. however USO inflow is at an all time high, and USCF even had to file w SEC to allow them to issue more shares to meet investor demand (as they cannot simply issue shares beyond what initially detailed in their prospectus).
reverse split maybe, but thats not a reflection of the etf health itself simply the dynamic nature of share price due to underlying fundamentals
side note, its crazy how large news outlets publish shit with so many glaring errors re: these products
https://www.barrons.com/articles/how-united-states-oil-fund-got-whipsawed-51587491180