Revisiting the old approach of the Silver Fund? Several oil-related funds hit the daily limit on the exchange.

On March 2nd, influenced by the international situation, many on-exchange crude oil and oil & gas themed funds saw significant increases in their net asset values. Several even hit the daily limit up.

Choice data shows that by the close on March 2nd, the top ETF gainers were all related to oil and gas or petroleum.

At least 10 related ETFs increased by more than 9.97%. Among them, the S&P Oil & Gas ETF, Huaxia Oil & Gas ETF, Harvest Fund Oil & Gas ETF, and GF Fund Oil & Gas ETF all reached the daily limit.

This marks a new wave of on-exchange fund speculation following the strong performance of silver funds at the end of last year and early this year.

Crude Oil ETFs and LOFs Lead the Rise

In recent years, a pattern has emerged in the fund market: on-exchange funds lead the charge, sharply increasing premiums, which then drives continued market enthusiasm. The performance of crude oil funds this time seems to be echoing this pattern.

On March 2nd, at least 10 related ETFs in the two markets increased by over 9.97%. Several, including the S&P Oil & Gas ETF, Huaxia Oil & Gas ETF, Harvest Fund Oil & Gas ETF, and GF Fund Oil & Gas ETF, hit the daily limit.

LOF funds are showing similar trends. Huaxia Oil & Gas LOF, E Fund Crude Oil LOF, Petroleum Fund LOF, PetroLOF, and Southern Oil LOF all hit the daily limit.

LOF Premiums Are Higher Than ETFs

In terms of market performance, ETF premiums are not yet high, but LOFs are showing more prominent premiums.

For example, the E Fund Crude Oil LOF, Petroleum Fund LOF, and Southern Oil LOF all have premiums exceeding 26%. In contrast, ETFs have not exceeded a 15% premium.

Premiums Reflect Market Enthusiasm

Moreover, premiums are also a measure of market enthusiasm.

The strong momentum of oil-related ETFs in this round of market rally is also reflected in their premiums.

For instance, the previously highest premium was seen in the S&P Global Oil Index Securities Investment Fund (LOF). This fund was suspended from trading from the market open on March 2nd until 10:30 am, but upon resumption, it surged sharply, oscillated at high levels for about half an hour, and then hit the daily limit up until the close.

Comparison with Silver Fund Trends

Although the trends are similar, crude oil funds have not yet fully replicated the pattern seen in silver funds in Q4 last year, due to structural reasons beyond just the time frame.

Both were triggered by major international events and resonated with commodity market bursts, making the rally particularly intense.

However, there are clear differences. In terms of investable varieties, crude oil products are more numerous, diverse, and have deeper market trading than silver funds, which helps disperse the rapid inflow of funds seen earlier.

Additionally, more companies are involved in raising funds for crude oil-related products. These companies have more resources and quotas, forming a product hierarchy that can help distribute pressure during future market fluctuations.

Of course, the key factor influencing the trend remains the movement of crude oil prices.

Risk Warning and Disclaimer

Market risks exist; investments should be cautious. This article does not constitute personal investment advice and does not consider individual users’ specific investment goals, financial situations, or needs. Users should consider whether any opinions, viewpoints, or conclusions in this article are suitable for their particular circumstances. Investment is at your own risk.