1. It is good to buy crude oil funds. Crude oil funds seem to have no handling fees, but the manager also buys crude oil funds from the United States. And the U.S. crude oil funds buy crude oil futures. If they are futures, there are transfer spread fees, and there is also fund management.
Fees and so on, layers of fees add up and a lot of profits are lost.
Of course, oil funds also have a risk, which is that the company has a certain probability of going bankrupt, but crude oil will not.
Welcome to criticize and correct me.
2. At present, the prices of oil funds are relatively large and their scale has increased, but they are mainly affected by international oil prices, but international oil prices are unlikely to rise on a large scale.
3. Because the global demand for oil has not really increased significantly, this also means that the increase in oil prices is unsustainable. Demand and supply are mutual. If demand is not enough, the market will not have strong support.
4. Secondly, another reason for the large-scale rise in oil prices is that OPEC countries are reducing production to a certain extent. However, if this production reduction continues for a long time, it will be very detrimental to the development of the country, so this is only a short period of time.
Production cuts and extreme weather in the United States have reduced the supply of U.S. shale oil, which is the main reason for the rise in crude oil prices.
5. In other words, it is difficult for a big bull market in oil and oil funds to come, but there is still a lot of room for growth in a short period of time. The bull market in the market will at least remain until the supply is fully restored. From this perspective
, the oil fund may have some room for growth, so we can choose band operations to avoid some risks.
The main differences between investing in crude oil and investing in crude oil funds are: 1. Different investment cycles: investing in spot crude oil is quick to realize cash, while investing in crude oil funds has a long cycle and poor liquidity; 2. Different income: investing in crude oil has high returns, more flexible operations, and returns on capital from investing in crude oil
Lower; 3. Different risks: The risk of investing in crude oil is higher than investing in crude oil funds.