I agree from a contrarian perspective. Though it's about timing
and being willing to go through the emotion of that. You also don't
have to pick bottoms and you can scale vs trying to buy all at
once
Also DBO appears to be a lot more stable. Looking it up looks
like USO is front month crude which makes sense for it being
weaker, whereas DBO is different, tracks changes in the DQIQ
optimum yield crude oil excess return index
here's an article that discusses the crude ETF's, DBO preformed
worse in the past but performed better this time because it didn't
have the up front crude exposure. The article concludes USL should
outperform but if the deep cantango persists or gets worse than DBO
would do better, and cautions against USO
I agree from a contrarian
The number of USO holders on Robinhood has more than ...
Posted by matt on 27th of Apr 2020 at 03:20 pm
I agree from a contrarian perspective. Though it's about timing and being willing to go through the emotion of that. You also don't have to pick bottoms and you can scale vs trying to buy all at once
Also DBO appears to be a lot more stable. Looking it up looks like USO is front month crude which makes sense for it being weaker, whereas DBO is different, tracks changes in the DQIQ optimum yield crude oil excess return index
here's an article that discusses the crude ETF's, DBO preformed worse in the past but performed better this time because it didn't have the up front crude exposure. The article concludes USL should outperform but if the deep cantango persists or gets worse than DBO would do better, and cautions against USO
https://seekingalpha.com/article/4339760-oil-price-recovery-usl-dbo-uso-which-etf-is-best
Matt - great article. I
Posted by ssaffer on 27th of Apr 2020 at 03:26 pm
Matt - great article. I will look to move some of my USO position over to DBO.