USO Crude Oil ETF Sees Outflows Begin As Performance Slumps

Analyst Paul Weisbruch of Street One Financial brings us his daily fund flows report, which today looks at an interesting new fund debuting today, some more outflows in the world’s largest ETF, and poor performance from a major crude oil ETF.

An intriguing fund hit the marketplace this morning known as TETF (ETF Industry & Financial Services) that we will be watching closely in weeks and months to come, and will cover it in more depth in this daily piece once it registers some live trading history. The fund invests in ETF issuers, asset managers, index providers and Broker Dealers that have operations tied to the ETF industry among other segments such as Securities Exchanges that deal in ETFs.

Elsewhere, daily whipsaw trading this week in the SPX has led to some outflows in SPY, with about $1.3 billion flowing out lately. However, compared to the recent mammoth flows that occurred in this and other funds around the FOMC rate decision last month, this is not a huge number for SPY.

Last but certainly not least, Crude Oil is having a terrible week as we see the largest tracking ETP USO (U.S. Oil Fund) is dipping more than 2% this morning after a huge drop just two days ago on heavy trading volume. After a notable rally in Crude Oil prices from late March lows, the prices have sunk precipitously again in no time flat and USO has sliced through both its 50 and 200 day MA’s.

USO has seen mild YTD outflows to the tune of about $125 million leaving the fund via redemptions. We see headlines from Iraq in recent days regarding the country seeking exemption from an OPEC deal targeting oil cuts, and this certainly seems to be pressuring crude prices this week.

The United States Oil Fund LP ETF (NYSE:USO) was trading at $10.32 per share on Friday afternoon, down $0.22 (-2.09%). Year-to-date, USO has declined -11.95%, versus a 5.04% rise in the benchmark S&P 500 index during the same period.

USO currently has an ETF Daily News SMART Grade of B (Buy), and is ranked #28 of 126 ETFs in the Commodity ETFs category.

Disclaimer: The content of this article is excerpted from a daily newsletter from Street One Financial. While ETF Daily News may edit the contents and add a relevant title to the piece, the author, Paul Weisbruch, does not endorse or recommend any issuer or security mentioned herein.

About the Author: Paul Weisbruch

paul-weisbruchPaul Weisbruch is the VP of ETF/Options Sales and Trading at Street One Financial. Prior to joining the team at Street One, Paul served as the Director of RIA and Institutional ETF Sales at RevenueShares ETFs from December 2007 until November of 2009. Before RevenueShares, Paul was employed by Susquehanna International Group from 2000 until 2007 serving in roles including OTC/NYSE Institutional Block Trading, Nasdaq/OTC Market Making, ETF/Derivatives Intelligence and Strategy, Algorithmic Trading, as well as acting as the PHLX Floor Specialist in the ETFs, SPY and DIA.Paul has been actively involved in the ETF space from both a product and trading standpoint since 2000. Additionally, Paul has well forged relationships with national RIAs, institutional pension fund managers and consultants, mutual fund and hedge fund managers, and also the ETF media. Co-authoring the “S1F ETF Daily” since 2009, the daily piece has become a must for many portfolio managers in the ETF space, with segments regularly appearing in the likes of Barron’s, WSJ, and for instance.

He holds his Series 4 (Registered Options Principal), 6, 7, 55 (Equity Trader), 63, and 65 licenses. He graduated from the University of Pittsburgh (B.S. – Economics), graduating magna cum laude, and has an MBA from Villanova University.

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