ETF investors face highest risk as oil volatility batters energy funds

Crude futures seesaw between negative territory and recovery

Mike Sheen
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Schroder ISF Global Energy and TB Guinness Global Energy are the worst-hit energy funds year to date
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Schroder ISF Global Energy and TB Guinness Global Energy are the worst-hit energy funds year to date

Extreme volatility seen in oil price movements over the past week, as the coronavirus pandemic continues to severely hamper demand for the commodity, could lead to emergency measures for hard hit energy funds, but mass flows into oil ETFs may leave passive investors exposed to much greater risks.

WTI Crude futures dipped as far as $30 into negative territory for the first time in history early last week, largely due to reduced demand for the May contract and limited purchaser storing space, which...

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