The ProShares K-1 Free Crude Oil Strategy ETF (BATS:OILK) is designed to track the performance of the index, which focuses on three separate contract schedules for West Texas Intermediate (WTI) Crude Oil futures traded on the New York Mercantile Exchange (NYMEX). The fund achieves this by investing in financial instruments that ProShare Advisors believes will replicate the performance of the index.
The index itself is composed of three equally-weighted contract schedules for WTI Crude Oil futures, which are reset semi-annually in March and September. This means that the fund's holdings are adjusted twice a year to maintain the equal weighting of the three contract schedules. By doing so, the fund aims to provide investors with exposure to the performance of crude oil prices, without the need to directly hold futures contracts or other derivatives.
It's worth noting that the fund's investment strategy involves using a combination of financial instruments, such as futures contracts, options, and swaps, to track the performance of the index. This approach allows the fund to provide investors with a more efficient and cost-effective way to gain exposure to crude oil prices, compared to directly investing in physical oil or other oil-related assets.
As an exchange-traded fund (ETF), the ProShares K-1 Free Crude Oil Strategy ETF offers investors a flexible and liquid way to invest in crude oil prices. The fund is listed on the BATS exchange under the ticker symbol OILK, making it easily accessible to investors who want to add crude oil exposure to their portfolios.