USL is a commodity pool organized as a Delaware limited partnership that issues units that may be purchased and sold on the NYSE Arca.
USL’s Objective
The investment objective of USL is to have the changes in percentage terms of the units’ net asset value reflect the changes in percentage terms of the price of light, sweet crude oil delivered to Cushing, Oklahoma, as measured by the changes in the average of the prices of 12 Futures Contracts on crude oil traded on the New York Mercantile Exchange (the “Benchmark Futures Contracts”), consisting of the near month contract to expire and the contracts for the following eleven months, for a total of 12 consecutive months’ contracts, except when the near month contract is within two weeks of expiration, in which case it will be measured by the futures contracts that are the next month contract to expire and the contracts for the following eleven consecutive months, less USL’s expenses. When calculating the daily movement of the average price of the 12 contracts each contract month will be equally weighted.
USL’s Portfolio
The portfolio consists of listed crude oil futures contracts and other oil related futures, forwards, and swap contracts. These investments will be collateralized by cash, cash equivalents and US government obligations with remaining maturities of two years or less.
Fund Benefits
- USL provides a vehicle to hedge crude oil movements or to take directional positions on oil prices
- USL offers the convenience of an exchange-traded security (NYSE Arca)
- USL permits commodity-like exposure without using a commodity futures account
- USL provides equity-like order flexibility, including market, limit, stop, stop limit and GTC orders
- USL provides Market Price, NAV, and Portfolio Holdings on a daily basis