The world’s first exchange traded fund that trades in oil stocks has been launched by Oil Securities, a London-based oil trading firm. The f...

The world’s first exchange traded fund that trades in oil stocks has been launched by Oil Securities, a London-based oil trading firm. The fund will be listed on the London Stock Exchange by the end of July. According to Oil Securities, the new fund gives investors exposure to the oil market without taking physical delivery of oil, trade in futures contracts or buying shares in oil companies. Citigroup and UBS will distribute and market the fund. The fund is the brainchild of former investment manager Graham Tuckwell who has set up similar funds for gold in Australia and New York. These two products are now have more than $3.3 billion in assets. Mr Tuckwell said that he established Oil Securities to alleviate the frustration felt by many investors trying to exploit opportunities in the oil sector and anticipated the initiative would open the oil market to a broad range of investors. “The oil price is talked about a lot but finding a way to buy into oil has been difficult or impossible for many investors – they may consider buying futures or other instruments to gain exposure but for practical, regulatory and mandatory reasons have found they cannot or would rather not,” he said.