Oil futures etf global macro funds are rotating into

Global macro funds are rotating into oil futures ETFs as a hedge against potential Q4 supply shocks, particularly in the Persian Gulf. Monthly ETF inflows in September were the largest in three years, according to data compiled by Bloomberg. Retail investors mistakenly thought this fund was a proxy for the "spot," or cash, price of oil, and bought in as its price plummeted. It isn't : The purpose of the ETF is to track the front-month oil futures contract. And after changing its structure multiple times in the past one week, the fund couldn't even do that correctly. The spread between front-month and deferred oil futures narrowed, benefiting short-term focused ETFs and enhancing rollover yields.