OILK

📎 Investment Objective

The ProShares K-1 Free Crude Oil ETF (OILK) seeks to provide investment results that correspond generally to the performance of the Bloomberg Commodity Balanced WTI Crude Oil Index.

✨ Key Features

• Provides exposure to the WTI crude oil market without the need to hold physical commodities or futures contracts directly
• Utilizes a balanced approach to minimize the impact of contango and backwardation in the futures market
• Designed to be a more tax-efficient investment compared to traditional commodity funds that issue K-1 tax forms
• Actively managed to seek to optimize the fund's performance relative to the underlying index

⚠️ Primary Risks

• Commodity risk: The fund's performance is tied to the price of crude oil, which can be volatile and subject to significant fluctuations
• Derivatives risk: The fund's use of swap agreements and futures contracts exposes it to the risks associated with derivative instruments
• Tracking error risk: The fund may not perfectly track the performance of its underlying index due to various factors, such as fees and expenses
• Liquidity risk: The fund may experience reduced liquidity, which could make it difficult to sell positions at favorable prices

👤 Best For

The ProShares K-1 Free Crude Oil ETF (OILK) may be suitable for investors seeking exposure to the crude oil market as part of a diversified portfolio. It may be particularly appealing to investors who want to avoid the tax complexities associated with traditional commodity funds that issue K-1 tax forms. However, investors should be aware of the inherent risks of commodity investing and be prepared to hold the fund for the long term.