Description

The Global X Crude Oil ETF (HUC) provides a unique strategy for gaining exposure to crude oil, specifically by focusing on the December futures contract of the Solactive Light Sweet Crude Oil Winter MD Rolling Futures Index ER. This particular contract is selected due to its generally higher liquidity and to minimize the negative roll yield often encountered with shorter-term monthly futures. This approach allows investors to access crude oil price movements without incurring the equity-specific risks – such as corporate instability, political uncertainties in oil-producing regions, or fluctuating interest rates – that come with investing directly in oil companies. HUC strives to replicate the performance of its underlying benchmark index, the Solactive Light Sweet Crude Oil Winter MD Rolling Futures Index ER, prior to fees, expenses, and transaction costs. Denominated in Canadian dollars, the ETF also actively hedges any gains or losses from its U.S. dollar-denominated investments back to CAD, thereby reducing currency risk for Canadian unitholders.