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You can get oil-related exposure without opening a futures position by buying shares in an oil-linked commodity pool or investing in oil-company stocks and energy-equity funds. The difference matters: a commodity pool such as United States Oil Fund (USO) holds futures on your behalf, while energy equities represent ownership in businesses whose results may be affected by oil prices. Neither route guarantees a return that matches crude oil’s spot price.
Choose the kind of oil exposure you want
“Without buying futures” can mean either avoiding futures altogether or avoiding the work of trading them yourself. Listed commodity pools meet the second meaning: you buy exchange-traded shares, but the pool invests primarily in futures. Oil-company shares and energy-equity funds avoid direct futures exposure for the investor, but their returns depend on company and portfolio performance rather than a crude-oil benchmark.
| Route | What you buy | What drives returns | Main distinction |
|---|---|---|---|
| Oil commodity pool, such as USO | Listed shares in a pool that invests primarily in oil futures | The pool’s futures exposure, collateral interest, expenses and trading costs | Futures exposure is managed by the pool, not eliminated |
| Oil-company shares | Shares in an individual energy business | The company’s operating results and other business and market factors | Exposure is to a company, not a direct crude-price target |
| Energy-equity fund | A fund holding company stocks or other securities | The performance of the fund’s underlying holdings | Portfolio exposure is indirect; holdings and terms vary by fund |
The SEC explains that ETFs can hold portfolios of securities and that an ETF’s market price may differ from its net asset value (NAV). Review a fund’s current prospectus and shareholder report to understand what it owns and how it is designed to work: SEC Investor.gov: ETFs.
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How an oil-linked pool works: the USO example
USO is a Delaware limited partnership and commodity pool. Its shares trade on NYSE Arca; the pool itself invests primarily in oil futures and may use other oil-related investments. Buying a USO share does not mean you own a barrel of oil. USCF explicitly cautions: “AN INVESTMENT IN USO SHOULD NOT BE VIEWED AS AN INVESTMENT IN THE BENCHMARK OIL FUTURES CONTRACT OR LIGHT SWEET CRUDE OIL.” See the USCF USO product page.
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Benchmark and roll schedule
USO’s benchmark is based on the near-month NYMEX light-sweet crude contract, which rolls into the next-month contract over an approximate five-day period, according to USCF’s product page accessed October 4, 2026. That is a futures benchmark, not the spot price of crude.
What the stated objective does—and does not—say
In its 2025 Form 10-K, filed in 2026, USO describes an objective relating to the average daily percentage change in NAV over 30 successive valuation days. The stated tolerance is plus or minus 10% of the benchmark’s average daily percentage change over that period, including collateral interest and expenses. This is an objective, not a promised result. It does not say that USO will match spot oil’s dollar price or its return over an arbitrary or multiyear holding period. The filing also notes that the objective can be met despite significant deviations on individual days. Read the SEC-filed 2025 USO annual report for the fund’s full disclosures.
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Why futures-based returns can diverge from spot oil
Contango and backwardation affect contract rolls
Futures prices for different delivery months can differ. In contango, the near-month contract is priced below the next-month contract. USCF says that, absent an overall oil-price move, the benchmark contract’s value tends to decline as it approaches expiration. When a fund rolls exposure from one contract to another, this market structure can affect its return relative to hypothetical direct exposure to crude. Backwardation describes the opposite relationship and can affect returns differently. These effects are not a simple forecast of where oil prices will go.
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Repair Windows errors before they cause bigger problemsFix Now →Scan for outdated or missing drivers - takes under a minuteDriver Scan →USCF discusses these mechanics in its risk disclosures; the SEC-filed USO quarterly report for the period ended June 30, 2026 provides additional fund-specific information.
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Other factors can weaken tracking
USO’s annual report states that neither its benchmark nor the fund is a proxy for spot crude and that the correlation between benchmark prices and spot prices can be imperfect. Expenses and transaction costs reduce returns, while position limits or market disruptions may also affect correlation. An exchange-traded share price can separately trade above or below NAV, so its market price is not guaranteed to equal the value of oil or the benchmark.
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How to evaluate a product before investing
- Identify the exposure target. Check whether the product targets WTI, Brent, a basket of commodities, or energy-company equities. Do not assume one crude benchmark or equity strategy behaves like another.
- Read the latest prospectus and shareholder report. Confirm the actual holdings and instruments, objective, benchmark, contract maturities, roll schedule, risks and any stated limits. USO’s filings describe USO specifically; their terms should not be generalized to other pools.
- Check costs and trading conditions. Review the current expense information, likely brokerage and transaction costs, liquidity, and bid/ask spread. For an exchange-traded fund, compare market price with NAV and understand that they may differ.
- Consider your holding period and risk tolerance. A product designed around futures or company stocks can behave differently from spot crude, and the relevant risks may change with market conditions and time held.
- Get individualized tax guidance if needed. Tax treatment can depend on the product and the investor’s circumstances; the information here does not establish a single tax outcome for all investors.
What these routes do not provide
- A guaranteed crude-price match: Neither a futures-based pool nor energy equities guarantee spot-oil returns.
- Barrel ownership through a share: A share in USO is an interest in the pool, not title to physical crude.
- A uniform “oil ETF” structure: Products may differ in benchmarks, instruments, maturities, roll schedules and risks. Check the current documents for the specific product.
- A universal best choice: The right route depends on whether you want futures-linked exposure managed by a pool or indirect exposure through energy businesses, and on the product’s current terms and your circumstances.
Product prices and availability are accurate as of the date/time indicated and are subject to change. Any price and availability information displayed on Amazon at the time of purchase will apply.
