UBS ETC on Bloomberg CMCI WTI Crude Oil Total Return Index USD (OILU)

Profile

UBS ETC on Bloomberg CMCI WTI Crude Oil Total Return Index USD is an exchange-traded commodity (ETC) designed to provide investors with exposure to the performance of West Texas Intermediate (WTI) crude oil futures. This financial instrument tracks the Bloomberg CMCI WTI Crude Oil Total Return Index, which employs a distinctive approach by distributing its exposure across multiple maturities along the futures curve, rather than concentrating solely on the nearest expiry contracts. This methodology aims to reduce the negative roll yield often present in traditional commodity indices that roll positions only at the front end of the curve. The index continuously and partially rolls futures contracts each day, maintaining a constant average time to maturity and reducing concentration and volatility risks. It is rebalanced monthly to target weights, taking into account liquidity and market conditions. The product is widely used by market participants seeking to capture movements in crude oil prices while mitigating some of the inefficiencies and risks associated with front-month rolling strategies. Its total return structure also incorporates interest earned on collateral, reflecting a more comprehensive return for investors. This ETC plays a key role in the commodities market by offering diversified and efficient access to WTI crude oil price dynamics.