The United States Brent Oil Fund LP (BNO) is an exchange-traded commodity fund structured as a limited partnership that seeks to reflect changes in the price of Brent crude oil, one of the world's primary crude oil benchmarks. The fund is managed by United States Commodity Funds (USCF) and trades under the ticker BNO on the NYSE Arca.

Classified as a commodity fund, BNO does not invest directly in physical barrels of crude oil. Instead, it primarily invests in Brent crude oil futures contracts traded on ICE Futures Europe, along with other related financial instruments, seeking to track movements in the price of Brent crude.

The fund follows a futures-based strategy and seeks to reflect, before expenses, the daily changes in the price of Brent crude oil. Because its portfolio consists of derivatives, its performance may differ from the spot price of crude oil during certain periods, particularly due to the effects of rolling futures contracts.

Diversification and sector exposure

BNO provides exposure primarily associated with:

• Brent crude oil.

• Crude oil futures contracts.

• Global energy markets.

• Energy commodities.

• Oil and gas sector.

• Financial derivatives.

• International commodity markets.

The fund provides direct exposure to movements in Brent crude oil prices without requiring investors to trade futures contracts or manage derivatives positions themselves. The fund's performance generally reflects movements in the global crude oil market and is influenced by both commodity prices and the characteristics of the futures market.

Structure and costs

BNO shares trade on the secondary market on the NYSE Arca during regular trading hours. Share creation and redemption occur through authorized participants, helping keep the fund's market price aligned with its net asset value (NAV).

The fund charges a management fee as outlined in its prospectus and does not apply a performance fee.

Because it invests primarily in commodity futures contracts, BNO generally does not distribute dividends derived from operating assets, as its strategy is based on derivative instruments.

History and evolution of the ETF

The United States Brent Oil Fund LP was launched in 2010 to provide investors with exchange-traded exposure to Brent crude oil. Since inception, the fund has primarily used Brent crude oil futures contracts to track the performance of the commodity in global markets.

Over time, BNO has been influenced by OPEC+ production policies, shifts in global energy demand, geopolitical events, the COVID-19 pandemic, the subsequent economic recovery, and ongoing changes in the international oil market.

Additional Information

United States Brent Oil Fund LP (United States) is an exchange-traded fund (ETF), with assets under management totaling $670.59 million.

Over the past 12 months, United States Brent Oil Fund LP recorded a return of 71.95%, with its price trading between $27.20 and $60.13 during the same period.

The ETF is traded under the ticker BNO.