What Are Brent Oil ETFs?
Investors looking to gain exposure to brent oil can do so through exchange-traded products that offer relatively low costs, low maintenance, and complete transparency. For U.S. investors, the United States Brent Oil Fund (BNO) is the best option for gaining access to this brand of crude. BNO invests primarily in front month futures contracts, rolling exposure on a regular basis as maturity approaches. So investors should be aware that this ETF will not replicate movements in spot brent prices, but rather the returns available from a futures-based strategy.
It is also important to note that because BNO is structured as a limited partnership, investors in this ETF will get a K-1 at the end of the year. That does not necessarily bring any adverse tax consequences, but may make administration a bit more time consuming.