Saturday, April 29th, 2017

Brent Crude ETF Comes To Market


Brent Crude ETF Launches ETF Focused On London-Traded Brent Crude Oil

Brent Crude ETF Launches ETF Focused On London-Traded Brent Crude Oil
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United States Commodity Funds, the ETF issuer behind heavily traded commodities ETFs such as the U.S. Oil Fund (NYSE: USO) and the U.S. Natural Gas Fund (NYSE: UNG), launched a new oil ETF focused on London-traded Brent crude oil.

The U.S. Brent Crude Fund (NYSE: BNO) made its debut on Wednesday and is the eighth ETF issued by United States Commodity Funds. BNO will attempt to reflect the daily price action in Brent crude traded on the ICE Futures Exchange.

Brent crude futures are the second-most heavily traded futures contract in the world behind West Texas Intermediate crude futures, which USO tracks, and some investors have said that Brent crude should actually be the benchmark oil quote, not West Texas Intermediate.

Brent Crude ETF Comes To Market

BNO started trading at $50 with 200,000 shares outstanding.

Like USO and UNG, BNO is probably not the best holding for a long-term investor because these ETFs invest in futures contracts, not physical commodities, meaning that when the front month contracts expire, the ETF has to purchase the next month’s contracts, driving up expenses in the process.

BNO has an expense ratio of 0.75%.

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