The United States Gasoline ETF, LP ( NYSEARCA: UGA ) is the markets exclusive gasoline exposure-based ETF and it has declined more than 20% since its record high trading level recorded last month.
UGA has declined 21.5% since June 9 th as the national average for a gallon of gasoline has come down below $4.50 for the first time in more than two months.
While gasoline prices have somewhat subsided, they are still up 9.3% over the last three months, and up 36.8% in 2022. Moreover, on a one-year time horizon gasoline prices are up 42%.
In light of gasoline prices remaining elevated over a longer period, it to has supported UGA. Year-to-date UGA is +53.4% and over a greater one-year period the fund is +86.9% .
UGA is designed to track in percentage terms the movements of gasoline prices and does so by investing in reformulated gasoline blendstock for oxygen blending futures contracts and other gasoline-related futures contracts.
While UGA may be most correlated to gasoline prices there are other energy ETFs that also have degrees of correlation to the commodity like the United States Oil ETF ( NYSEARCA: USO ), Invesco DB Oil Fund ( DBO ), Energy Select Sector SPDR Fund ( NYSEARCA: XLE ), Vanguard Energy ETF ( NYSEARCA: VDE ), and the Alerian MLP ETF ( AMLP ).
U.S. crude oil prices reclaimed $100/bbl as buyers took advantage of last week’s selloff.
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National avg. gasoline prices dip below $4.50 for the first time in 2-months and this ETF noticed