Welcome to Plain Investor I'm your
host, Dan!
today I want to discuss how did oil ETF
perform in past few recessions
especially I'm going to go through the oil
ETFs, the most popular oil ETF is called
USO or United States Oil Fund
and then after that I'm going
to display the chart of the USL which
is similar to USO in the sort of
holding the oil contracts for the next
month, it holds the future oil contract for
the next 12 months I'm going to compare
the price of these to ETFs with the
actual price of the oil in the past
recessions, Stay tuned!
what are the most popular oil ETFs here based on again
this website we can say us or add TP or
and us L are the most popular or a ETF
so what are the difference between these
three oil it basically PPO
its hold the future oil contract of
crowd oil for the delivery of February
21 and vs. us L and us all is to hold
the future oil contract of TT I or West
Texas oil so what's the difference
between it between us L and us all us
all and just hold one month the next
month future oil contract which for
example for now its hold their operand
2020 and it's 50% of this the holding
versus the USL its hold 12 the next 12
months oil contract specifically just
compare these two here in the Yahoo
Finance you can see we have a us or us
or just hold the future oil contract
around 50% for operate 20 20 versus us
we do have a little early for next 12
months exactly what I did if you look at
this chart this is the monthly chart of
WTI I pick up this date and 2008
recession and 2014 which the price
dropped and as of now you have the price
of oil drops so I pick up all of these
dates and putting the excel sheet for
WTI and us or USL and PPO if you look at
the excel sheet price for all of them
dropped then it's bounced back
an interesting fact you can see TB all
us all and USL all of these three are
ETF and the ETF or underperforming
compared to their actual oil price for
example here you can see the crowd oil
this is hundred percent different
difference here and pretty much the same
for all it here so the first takeaway
here you can see and the all ETF it's
not actually keep the exact price of the
oil but for average person it's a good
way to invest in the market but how did
you choose between history idiot ETF so
to answer this question again we can go
in move forward and compare so again I
did this mat for 2008 2014 and as of now
to tell I pick up the price from January
and as of now that I'm recording this
it's 18 of May 20-22
invest again $1000 in June 2008 you will
lost most of this value based on this
percentage but then how much you would
return you can see amount this tree ETF
you can see the u.s. always do the worst
performance for 2008 recession the vs.
debut on us elk and of its perform
pretty similar
and if we look at the 2014 English the
price of the oil drop around that time
basically you can see us elk perform
better than PPO and us or and as of now
you can see the price dropped in up real
and now again you know I'm recording
this so far we can see us l perform much
better than DB or and us Bowl and again
you can see based on this one us it has
a worker from the Mounties three ETA to
give more perspective I compared the
price of all of these three ETF or Lydia
on the trading wheel you can see the
blue one it shows the USL the black one
shows tbo and the red one shows us for
in 2008 the price drop then it's bounced
back you can see us all it's really
underperform in compared to tbo and USL
then if we go further in 2014 the price
drop then around 2016 it's bounced back
I don't you can see between these three
USL perform better after us L it's a dbo
and us all again is the board's
performance amount is three ETF and what
where we are standing now kind of quit
is similar and you can see us and us oh
it's the worst performance then PPE
better performance and among all of
these three again the blue one is us L
USM perform much more better so the main
takeaway Mountain these three ETF
definitely you can see us L is performed
much more better in among all of them
talking about fundamental why US or its
underperform the other two etx it's
coming back to this contango and
negative role
I definitely suggest you if you're
interested more why they use or
underperform from again fundamental
aspect you can check out this article I
hope you liked this video yo please
don't forget to subscribe to my channel
and like the video
I personally going to English and why
the share of the u.s. L which again it's
much it perform much better and comfort
the other tool but you have to take into
account the market cap of this ETF it's
not that much so I wouldn't put a lot of
money in this ETF but the risk your own
rewards are based on the fundamental
aspect of the oil market that I have
shown you on the previous video and you
can see the price of the oil is going to
be increased
