Stay Tuned for an ETF Based on the CRB Commodity Index
October 9th at 11:05am by Tom Lydon
The oldest commodity index in the world will be paired with the popular exchange traded fund (ETF) soon. Greenhaven Commodity Services has filed with the Securities and Exchange Commission (SEC) to launch an ETF tied to the Reuters/CRB Commodity Index. The ETF would launch on the American Stock Exchange (AMEX) and would charge 0.85% in annual fees.
Although the CRB Commodity Index is still one of the best-known commodity indexes, it’s very different from other commodity indexes on the market today. The CRB Commodity Index equally weighs 17 commodities: corn, wheat, soybeans, cattle, pigs, gold, silver, copper, cocoa, coffee, sugar, cotton, orange juice, platinum, crude oil, heating oil and natural gas. In contrast, most indexes weigh commodities by either their used value in the global economy or their liquidity in the financial markets, explains Matt Hougan for Index Universe. In the CRB Commodity Index, in all, energy makes up 17.6%, industrial metals comprise 5.9%, precious metals account for 17.6% and agriculture makes up 58.8%.
