| Long term investment in future contracts for oil has given only return of 9.8%, even though the price of oil rose 202.8% in that period. Long term investors in futures contracts should roll over expiring contracts, and because of the contango effect, the return was only 9.8% or 0.32% annually, without taking in account trade commissions.
In order to include the oil ETF, United States Oil (USO), and the oil ETN, iPath S&P GSCI Crude Oil (OIL), which were launched in 2006, an identical study was performed on a much shorter period, from September 01, 2006 to July 25, 2012...............................................Full Article: Source |