Exchange Traded Fund (ETF), United States Oil Fund (USO), Is Under Investigation from the SEC

June 22, 2020 Author: Brian Levin
oil stock market

Have You Suffered Losses After Investing in the United States Oil Fund (USO)?

If you suffered losses due to investing in the exchange-traded fund (ETF), United States Oil Fund (USO), contact Levin Law immediately to discuss your recovery options. As reported by Bloomberg, the Securities and Exchange Commission and the Commodity Futures Trading Commission are investigating whether the risks associated with the USO were adequately disclosed to investors. Bloomberg notes that the fund, which “uses complex derivatives to track oil… has lost 75% of its value this year.”

The USO has been popular among retail investors. Unfortunately, some have sustained significant losses. The United States Oil Fund LP is “an exchange-traded security designed to track the daily price movements of West Texas Intermediate (“WTF”) light, sweet crude oil,” according to its website. It is believed that many investors were unaware of the risks associated with the investment and thought that it was tied to the price of crude oil instead of futures.

Commodity-based ETFs such as the USO do not always match the performance of the underlying physical commodity, in part because they are based on futures contracts. If a broker or financial advisor recommends investment in an ETF, he or she must inform the investor about the risks involved with a futures-based fund. In many cases, complex ETFs may not be suitable for an average investor.  Levin Law is evaluating possible claims against financial institutions that recommended and sold USO to customers, as well as a possible class action against USO and other companies. 

Contact Levin Law for a Free Case Evaluation

If you experienced investment losses because of your stockbroker’s, banker’s, or investment advisor’s misrepresentation or intentional wrongdoing, you might be entitled to compensation through a FINRA arbitration. Please contact Brian Levin for a free case evaluation at 305-402-9050 or Levin Law accepts most cases on a contingency-fee basis, meaning that you would not be obligated to pay Levin Law’s attorney fees unless we recover money on your behalf.

About Levin Law

Levin Law is a premier national securities and class action law firm. Brian Levin, Levin Law’s managing attorney, has obtained settlements and recoveries in excess of $100,000,000 in assets through arbitration and litigation for individual and institutional investors throughout the country and the rest of the world. Levin Law represents retirees, individual investors, high-net-worth investors, ultra-high-net-worth investors, institutions, family offices, trusts, publicly held companies, and others.