https://www.bloomberg.com/quote/BCOMCLTR:IND
https://www.bloomberg.com/quote/CRUD:IM
OD7F is what we can buy on Trading212, CRUD.MI is just another ticker for it…
Now why is there such a massive difference in these ? Exchange rate alone doesn’t explain it… WisdomTree says that are aiming at tracking that index…
Some screenshots taken at the same time to illustrate the difference
I have quite a large amount of WTI oil (OD7F) and I believe it tracks the BCOM:CLTR pretty accurately. I don’t know how the WTI price is calculated but I’ve tried to look into the price of the BCOM and it’s very complex. All I know is over the last month or so I’ve found them to track closely in terms of +/- variations. Not sure it really answers your question though. One thing I do know is that the WTI keeps its price at close of market 4:30 and the BCOM keeps tracking till the close of the US market around 830 UK time so this may account for the discrepancy in the prices at 16:35.
I’m sure that’s not much help! Sorry
Thanks. I understand ETCs have rolling yields so they can’t track the spot price but I don’t understand why precovid they did and post covid they deviated from spot price quite a lot.
See CL=F agains CRUD.MI in red. (Milan’s OD7F equivalent)
Hmmmm interesting. But not a question I can answer as to why.
I do know that they’ve changed the forward contracts they’re tracking and it’s now using the Sept contract as opposed to the July one.
Be interested to see if you can find an answer to this. However, it’s still doing pretty well for me at the moment and it’s the only oil tracker I’ve found so gonna stick with it.
Good info. Where do you see what contracts they are tracking ? Indeed it’s only oil tracker… I’d like to have CRUD from LSE… as it’s in USD… as it’s just confused me and condition me having the ticker in EUR.
Well CRUD just tracks the Bloomberg BCOM:CLTR so I found it from Bloomberg. However they’ve just made a change to it light of the May contract going negative so it’s now tracking futures further ahead ie Sept. I’ll see if I can find some links. To be honest I looked into, understood a bit, and then thought, what difference does it make it I understand it or not???! It tracks oil so as long as it does what it says I’ll stick with it. Lol
Unfortunately long term an OIL ETC is far from tracking the oil as you’ll have rolling yields for the ETC selling the contract and buy the next month’s contracts… it won’t track as good as the SPOT price.
If you see any documentation on what contracts they track now, please post it here.
Hi there. I agree that it doesn’t track the spot price but is there anything that does???
This link is for the BCOM methodology. Table 9 I think is pertinent.
https://www.google.com/url?sa=t&source=web&rct=j&url=https://data.bloomberglp.com/indices/sites/2/2018/02/BCOM-Methodology-January-2018_FINAL-2.pdf&ved=2ahUKEwjPn9q07-fpAhWiolwKHVlpBXEQFjAAegQIAxAC&usg=AOvVaw2SsACMuOmJlNFkfZKu3GYV
And this is the announcement of the recent changes to the above
If you can let me know your thoughts it would be appreciated.
Thanks
