The summertime is typically met with the prospect of higher gas prices, and if you happen to own a 747 or SUV, then the newly launched United States Gasoline Fund (UGA) might be for you.
The fund aims to reflect changes in percentage terms of the price of gasoline, as measured by the futures contract on unleaded gasoline traded on the New York Mercantile Exchange that is the near month contract to expire.
The total expense ratio will be 0.69 percent, which includes estimated brokerage costs for futures contracts. At least 90 percent of UGA’s gross income for each taxable year will constitute “qualifying income” generated from interest and gains associated with gasoline contracts.
The fund is organized as a partnership and Victoria Bay Asset Management is the acting general partner.
Ron DeLegge is the San Diego-based editor of www.etfguide.com.