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January 31, 2006

New ETF for commodities, Tues., Jan. 31, 2006, 4:39 AM

Several readers have alerted me to a new ETF that starts trading on Friday under the ticker DBC, which stands for Deutsche Bank Commodities I suppose. Kinda like the Apple NY Crude or the Trump Bank of America branding issue I told you about.

In any event, this security is based on a tracking of various commodity prices comprised of Crude Oil 35 pct, Heating Oil 20 pct, Corn 11.25 pct, Wheat 11.25 pct, Aluminum 12.5 pct and Gold 10 pct. The info can be found at www.dbcfund.db.com.

Interestingly, the tradeable Goldman Sachs Commodity Index (GSCI) is a 75 pct energy-weighted index tracking instrument.

As I understand it, DBC is also an index tracker, so there are no actual physicals involved, like GLD, IAU and (when it starts trading) SLV. Asset Backed Securities are the type that I believe the public wants.

Btw, Gold and Silver is up yet again this morning. Gold is up to $570.25 (spot price, 4:23 am ET) and Silver is up strongly to $9.902 (spot price, 4:36 am ET). It's another precious day.


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Posted by Posted by Bill Cara on January 31, 2006 04:36:57 AM | Category: Commodities

Discourse

A BGI iShares ETF based on the GSCI that will trade in the US has also been in the works for some time. http://cfpnonline.com/news.php?id_content=4&idNews=341

A similar product, also based on the GSCI, is already available in Europe as part of a AXA/BNP Paribas ETF product line.

-Motts

Posted by: mottsmcg [TypeKey Profile Page] at February 1, 2006 12:06 PM [link]