Australia's largest stock trading and investment forum Australia's #1 stock forum

OOO

Click for more information

2.81%

$19.36 betashares crude oil index etf-currency hedged (synthetic)

WPL and other oil stocks have very low correlation to the price...

First 28 Last

Share
Profile

Follow
thembi

39 Posts.

1

19/12/14

10:55

Post #: 14486079
Share

Originally posted by heraclitus ↑

Why not just go long a CFD over crude and save paying a mgmt fee?
If you're looking longer term, just use wide stops and fewer contracts to get your desired $ exposure. Also spreads are very small on highly liquid underlyings, such as oil, so the transaction cost is minimal.

Also, the fund's performance since inception is -2.45%. Given the hedging, why not just buy a producing, post-capex, Australian oiler that's low on the cost curve and enjoy dividends? For example, WPL, in those same two years since inception is up 8%, not including dividends.

Expand

WPL and other oil stocks have very low correlation to the price of WTI oil (circa 30%), so not a particularly direct way to play the oil price.

OOO Price at posting: $30.40 Sentiment: Hold Disclosure: Not Held
1 Upvote

0 Great analysis

Reply

There are more pages in this discussion • 86 more messages in this thread...

First 28 Last

Add OOO (ASX) to my watchlist

SPONSORED BY