Oil ETF

Interesting news for all ETF investors and those who believe that oil prices still have a ways to go.

The American Stock Exchange launched the first ETF that tracks the price of U.S. oil yesterday. Under the ticker symbol USO, the fund will track the price of U.S. oil futures.

After its first day of trading, the fund closed at $68.02 — or a little more than $2 off the record high of US$70.85 that barrels of oil hit after Katrina last year.

An etf that opens at a few dollars below the all-time high of the asset it tracks? Considering these things are supposed to be long-term investments, I'm not convinced.