30.01.2009 - Contango: How it affects crude oil ETFs and ETNs
From Seekingalpha.com: The US Oil Fund holds long positions in West Texas Intermediate crude oil futures contracts, and rolls these contracts forward each month. Like most futures traders, USO buys futures with leverage, putting up a small portion of the money to buy the contracts. The rest of the money is invested in Treasuries, which generates interest income for the fund..... Full Article: Source