I’m looking to invest in (od7f) WisdomTree wti crude oil etf on trading212. I’m worried about being taxed when taking profits though. I live in the U.K. and I’m using an isa trading212 account. If anyone could shed any light on tax on this etf it would be very helpful. Thanks!
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Just a side note: There is a possibility that some WTI Oil indexes will be liquidated in the near future, so be prepared to lose all your money in the worst case scenario.
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Ive read up on it myself and it seems to be 100% backed by collateral.
The ETC is backed by contracts (fully funded swaps) with counterparties whose payment obligations are backed by collateral which is marked to market daily. The collateral is held in pledge accounts at The Bank of New York Mellon.
Im not exactly sure what this means. Does it mean its risk free?
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Stock ETF’s hold real stocks, Gold ETF’s like GLD hold real gold in their basement.
With oil it is different, those oil indexes do not hold real oil, just some speculative contracts and some synthetic stuff.
My advise would be to stay away if you do not understand the mechanics and risks. Hopefully some other people might explain in detail why this might be a bad investment.
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Why would they be liquidated?
"Largest Oil Fund, USO, On The Brink Of Collapse"
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Oh wow, I’ll maybe give this whole oil thing a skip then
This is a better alternative. Tracks stocks not oil price. However, not available on T212…so seeing you would have to sign up to a premium paying platform like Interactive Investor (ii) to access it, have requested the eft in other section.
SPDR MSCI World Energy UCITS EFT (WNRG)
Hi, just to revisit this topic, wouldn’t these ETFs just do a reverse stock split if the share price comes close to zero?
If I recall correctly, that is what USO is doing today actually, an 8:1 reverse split.
Apparently it’s been suspended now. What does this mean?
May 1st is a Bank Holiday in Germany
Once the T212 PIE is live you could take something like the SPDR MSCI World Energy UCITS EFT (WNRG) look at the individual companies held by this fund and the weighing and set up an auto-invest via a PIE just for OIL. You could even add some other OIL related companies if you so wished.