Understanding Oil Index Funds and Their Performance

Oil index funds are a type of investment that allows you to diversify your portfolio by tracking the performance of the oil market.

They offer a convenient way to gain exposure to the oil market without having to buy individual oil stocks or futures contracts.

Oil index funds typically track a specific oil benchmark, such as the West Texas Intermediate (WTI) crude oil price.

This benchmark is widely recognized and used as a reference point for oil prices.

By tracking this benchmark, oil index funds aim to provide returns that closely mirror the performance of the oil market.

In fact, some oil index funds have been able to replicate the oil market's returns with high accuracy, as seen in the example of the iPath S&P 500 VIX Short-Term Futures ETN, which has a correlation coefficient of 0.99 with the S&P 500 VIX Short-Term Futures Index.

Oil index funds can be a good option for investors who want to gain exposure to the oil market but don't have the time or expertise to actively manage their investments.

The Texas Capital Texas Oil Index ETF seeks to provide investment results that correspond to the total return performance of the Alerian Texas Weighted Oil and Gas Index, an economic-value weighted index providing exposure to companies that extract oil and gas within Texas.

The fund has a ticker symbol of OILT and is listed on the NYSE Arca exchange. It has a CUSIP of 88224A 300 and a type of GLOBAL EQUTY | PASSIVE ETF.

The fund's inception date is December 20, 2023, and it has a schedule K-1 of None. The expense ratio is 0.35%.

Here are some key features of the fund:

The fund's distribution yield is not publicly available. However, the 30-day SEC yield is available, but the exact value is not provided in the article section.

Oil index funds are a popular investment option for those looking to diversify their portfolio and gain exposure to the oil market. They offer a convenient way to invest in oil without having to buy physical oil or navigate complex trading platforms.

The performance of oil index funds can vary depending on the specific fund and market conditions. For example, the SG ETC Light Sweet Crude Oil (WTI) Futures-Kontrakt fund has a 1-year return of 15.01% and a 3-year return of 26.81%. In contrast, the BNPP RICI Enhanced Brent Öl (TR) ETC fund has a 1-year return of 7.00% and a 3-year return of 33.52%.

Here's a list of some of the top-performing oil index funds based on their 1-year returns:

It's worth noting that past performance is not always indicative of future results, and it's essential to do your own research and consider your investment goals and risk tolerance before investing in any oil index fund.

The comparison of all oil ETFs/ETCs returns is a crucial aspect of investing in the oil market. The returns are calculated including dividends as of month end and can be viewed on a cumulative or calendar year basis.

The SG ETC Light Sweet Crude Oil (WTI) Futures-Kontrakt has a 1-month return of 5.29%, while the WisdomTree Bloomberg WTI Crude Oil has a 1-month return of 2.05%.

The SG ETC Light Sweet Crude Oil (WTI) Futures-Kontrakt also has a 3-year return of -%, while the BNPP WTI Öl (TR) ETC has a 3-year return of 36.29%.

The BNPP WTI Öl (TR) ETC has a 1-year return of 12.37%, while the WisdomTree WTI Crude Oil has a 1-year return of 11.20%.

The BNPP RICI Enhanced Brent Öl (TR) USD ETC has a 3-year return of 33.52%, while the BNPP RICI Enhanced WTI Öl (TR) USD ETC has a 3-year return of 30.18%.

Here is a table summarizing the top 3 ETFs/ETCs with the highest 3-year returns:

Oil index funds are a popular investment option for those looking to diversify their portfolio. The fees associated with these funds can impact your returns.

The management fee for this oil index fund is 0.40%. This fee is likely deducted from the fund's assets on a regular basis.

To put this fee into perspective, consider a $10,000 investment in the fund. Over the course of a year, the 0.40% management fee would amount to $40.

Here's a breakdown of the fees associated with this oil index fund:

The fund's top 10 holdings are also worth noting. The exact holdings may change over time, but as of the current prospectus, the fund holds a diverse range of oil-related assets.

Fees can be a significant consideration when investing in a fund. The management fee is 0.40%.

The acquired fund fees and expenses are surprisingly low, at 0.00%. This is a notable advantage for investors.

Other expenses are also minimal, at 0.00%. This is a good sign for the fund's efficiency.

The total expense ratio is simply the management fee, 0.40%. This is the total cost of investing in the fund.

Here's a breakdown of the fees:

Note that these figures are current as of the prospectus, but may not reflect extraordinary expenses.

To find the right oil index fund, you'll want to research and compare different options. This means looking at their investment strategies, fees, and performance over time.

Some funds focus on major oil-producing countries like the US, Canada, and Norway, while others invest in global oil markets. The US Oil Fund (USO) and the iPath S&P 500 Energy ETN (OIL) are two examples of funds that track major oil-producing countries.

Fees can vary significantly between funds, with some charging as much as 1.5% annually. In contrast, the iPath S&P 500 Energy ETN (OIL) has an expense ratio of 0.45%.

Comparing the performance of different funds is also crucial. The US Oil Fund (USO) has historically been more volatile than the iPath S&P 500 Energy ETN (OIL), with a standard deviation of 25.1% compared to 14.8%.