Interest in commodity investments has boomed in recent years, and billions of dollars have poured into the space, most noticeably in the form of exchange-traded products. With so many choices out there, it’s well worth taking the time to highlight special cases that may offer investors unique opportunities; the United States Commodity Index Fund (USCI) is one such fund [see Everything You Need To Know About Commodity ETFs]. In A Nutshell Launched in August of 2010, USCI takes a more active rules-based approach to commodity investing. The fund is designed to track the SummerHaven Dynamic Commodity Index Total Return, an index that selects 14 of a possible 27 commodities each month. The underlying benchmark is also re-balanced every month and gives equal weight to all holdings. Seven of the holdings are chosen on the basis of backwardation (those that have the most make the cut), with the other seven chosen on the basis [...] Click here to read the original article on ETFdb.com. Related Posts: One Year Later: USCI Remains An Intriguing Commodity ETF Ten New Years’ Resolutions For ETF Investors Closer Look At The “Third Generation” Commodity ETF Ultimate Guide To “Third Generation” Commodity ETPs BNP Paribas Jumps In With Commodity ETF (BNPC)
Interest in commodity investments has boomed in recent years, and billions of dollars have poured into the space, most noticeably in the form of exchange-traded products. With so many choices out there, it’s well worth taking the time to highlight special cases that may offer investors unique opportunities; the United States Commodity Index Fund (USCI) is one such fund [see Everything You Need To Know About Commodity ETFs]. In A Nutshell Launched in August of 2010, USCI takes a more active rules-based approach to commodity investing. The fund is designed to track the SummerHaven Dynamic Commodity Index Total Return, an index that selects 14 of a possible 27 commodities each month. The underlying benchmark is also re-balanced every month and gives equal weight to all holdings. Seven of the holdings are chosen on the basis of backwardation (those that have the most make the cut), with the other seven chosen on the basis [...]
Click here to read the original article on ETFdb.com.
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