Tag: Equities
Enjoy Rising Gas Prices
by Doug on May.12, 2009, under Indexes
The United States Gasoline Fund, LP (UGA) is an interesting fund that tracks the price of unleaded gasoline.
To quote:
The trust will invest in the futures contract on unleaded gasoline delivered to the New York harbor traded on the New York Mercantile Exchange that is the near month contract to expire.
The trust is organized as a limited partnership meaning you will get K-1 forms (around March) instead of 1099 forms. The expense ratio is 0.60%.
Gasoline prices are volatile and are dependent on many factors:
- crude oil price
- refining capacity
- supply and demand
- seasonality
- government regulations
- government taxes
Here is a link to the United States Gasoline Fund home page. The fund is managed by United States Commodity Funds, LLC.
Remember, the fund tracks gasoline prices, not oil prices. Also, no dividends are paid.
We have no holdings or vested interest in this fund nor is this a recommendation.
Doug
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