USO is an exchange-traded fund (ETF) that tracks the price of West Texas Intermediate (WTI) light, sweet crude oil futures contracts. It provides investors with exposure to crude oil prices without directly trading futures.
Description: The United States Oil Fund, LP (USO) is one of the largest and most liquid oil ETFs in the world. Launched in 2006, it invests primarily in near-month crude oil futures contracts traded on the New York Mercantile Exchange (NYMEX). The fund aims to reflect the performance of the spot price of WTI crude oil, minus expenses. Due to the structure of futures markets, USO may experience contango or backwardation, which can cause its performance to deviate from spot oil prices over time. It is widely used by retail and institutional investors for hedging, speculation, and portfolio diversification. The fund is issued by United States Commodity Funds LLC and is listed on the NYSE Arca.
Established / Launched: 2006
Founder / Issuer: United States Commodity Funds LLC