The United States 3x Oil FundSM (USOU) is an exchange-traded product designed to reflect three times (3x) the daily price movements of West Texas Intermediate (WTI) light, sweet crude oil. USOU issues shares that may be purchased and sold on the NYSE Arca.
The investment objective of USOU is for the daily changes in percentage terms of its shares' NAV to reflect three times (3x) the daily changes in percentage terms of a specified short-term futures contract on light, sweet crude oil called the “Benchmark Oil Futures Contract”, less USOU's expenses.
To achieve this objective, USCF will endeavor to have the notional value of the Fund’s aggregate exposure to the Benchmark Oil Futures Contract at the close of each trading day approximately equal to 300% of the Fund’s NAV. The Fund will seek a return that is 300% of the return of the Benchmark Oil Futures Contract for a single day and does not seek to achieve its stated investment objective over a period of time greater than one day. The pursuit of daily leveraged investment goals means that the return of the Fund for a period longer than a full trading day may have no resemblance to 300% of the return of the Benchmark Oil Futures Contract for a period of longer than a full trading day because the aggregate return of the Fund is the product of the series of each trading day’s daily returns. For the Fund to maintain a consistent 300% return versus the Benchmark Oil Futures Contract, the fund’s holdings must be rebalanced on a daily basis by buying additional oil Interests or selling oil Interests that it holds. Rebalancing will occur generally before or at the close of trading of the shares on NYSE Arca, at or as near as possible to that day’s settlement price.
USOU's benchmark is the near month light, sweet crude oil futures contract traded on the NYMEX, traded under the trading symbol "CL". If the near month futures contract is within two weeks of expiration, the benchmark will be the next month futures contract to expire. The crude oil contract is WTI light, sweet crude oil delivered to Cushing, Oklahoma.
USOU invests primarily in listed crude oil futures contracts and may invest in forwards, swap contracts, other oil-related futures contracts, and certain options on oil futures contracts. USOU invests in these oil interests to the fullest extent possible without being leveraged or unable to satisfy its current or potential margin or collateral obligations. These investments will be collateralized by cash, cash equivalents, and US government obligations with remaining maturities of two years or less.
Additionally, investors should be aware that the Fund’s investment objective is not for its NAV or market price of shares to equal, in dollar terms, the spot price of light, sweet crude oil.
|Intra-day Indicative Value||USOU.IV|
|Minimum Trade||1 share|
|Total Expense Ratio|
|Administrator||Brown Brothers Harriman & Co.|
|Distributor||ALPS Distributors, Inc.|
|Sponsor||United States Commodity Funds, LLC|
1The Fund is contractually obligated to pay USCF a management fee based on daily net assets and paid monthly of 1.35%. Average daily net assets are calculated daily by taking the average of the total net assets of the Fund over the calendar year, i.e., the sum of daily total net assets divided by the number of calendar days in the year. On days when markets are closed, the total net assets are the total net assets from the last day when the market was open.
The United States 3x Oil FundSM launched on , therefore, Performance information is not available at this time.
Growth of $10,000 Investment
The United States 3x Oil FundSM launched on , therefore, Growth of $10,000 Investment information is not available at this time.
Average Daily Returns
The United States 3x Oil FundSM launched on , therefore, Average Daily Return information is not available at this time.
Premium / Discount
The above frequency distribution chart presents information about the difference between the daily market price for shares of the Fund and the Fund's reported net asset value. The amount that the fund's market price is above the reported NAV is called the premium. The amount that the fund's market price is below the reported NAV is called the discount. The market price is determined using the midpoint between the highest bid and the lowest offer on the listing exchange, as of the time that the Fund's NAV is calculated (usually 4:00 pm Eastern time). The horizontal axis of the chart shows the premium or discount expressed in basis points. The vertical axis indicates the number of trading days in the period covered by the chart. Each bar in the chart shows the number of trading days in which the Fund traded within the premium/discount range indicated.
* A basis point is equal to 1/100th of 1% and is used to denote the change in a financial instrument.
Creation & Redemption Process
- Creation/Redemption Basket Size 50,000 Shares
- Transaction fee for each Authorized Purchaser Order is equal to 0.04% of total NAV of the Creation/Redemption Baskets for each order they place to create or redeem one or more Creation/Redemption Baskets
- Order Cut-off for AP's is 12:00 p.m. ET
- USOU's NAV is calculated generally around 4:00 pm ET
- Settlement is T+3
- Custodian is Brown Brothers Harriman & Co.
- Marketing Agent is ALPS Distributors, Inc.