Oil funds want to reduce risk. Will investors let them?
Despite posting big losses, funds that track front-month contracts remain popular with investors
Sometimes, the customer is wrong.
Since front-month oil futures went negative in April, investors have been piling into exchange-traded products (ETPs) that track these contracts. Issuers have responded by closing some products and distancing themselves from the strategy.
At least three major asset managers are in the process of overhauling their oil ETPs.
WisdomTree is seeking approval from investors to turn its front-month WTI crude oil tracker – called CRUD – into a multi-tenor investment
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