West Texas Intermediate crude opened 2026 near $57 a barrel and spiked to almost $115 on April 7 after the Strait of Hormuz effectively closed to tanker traffic.
Crude oil has whipsawed traders in 2026 with a violence not seen in years. WTI bottomed at about $56 in early January, then ripped to nearly $115 by early April as the de facto closure of the Strait of Hormuz tightened global supply, before settling around around $96 by early June.
Aramco is considering expanding its global oil-storage network after the Iran war exposed the importance of strategic reserves in keeping crude flowing to customers.
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This fund focuses on mimicking the performance of its benchmark index. It allocates a minimum of 80% of its assets to securities that are part of the index or those nearly identical. To diversify its investment portfolio and enhance tracking accuracy against the index, up to 20% of its assets might be directed towards futures, options, swap contracts, cash, cash equivalents, and securities not present in the index. The fund operates with a non-diversified status, indicating a concentrated investment strategy in the securities it believes will closely follow the index's performance.
The primary strategy involves investing at least 80% of the fund's assets directly in the securities that form part of the designated index or in investments nearly identical to those securities, ensuring the fund closely tracks the index's performance.
Up to 20% of the fund's assets may be allocated to futures, options, and swap contracts, along with cash and cash equivalents. This allows for flexibility in investment strategies, hedging against market volatility, and maintaining liquidity.
A portion of the assets can also be invested in securities not included in the index. These investments are selected based on BFA's belief that they will help the fund more accurately track the performance of the index, providing an edge in achieving investment objectives.