February 06, 2006 at 9:07 am by Tom Lydon
The first commodity-linked index fund launched on Friday - Deutsche Bank’s new exchange-traded fund is the Deutsche Bank Commodity Index Tracking Fund (DBC). The ETF uses futures contracts to mirror the Deutsche Bank Liquid Commodity Index, which is made up of 35% crude oil, 20% heating oil, 12.5% aluminum, 10% gold and 11.25% each in corn and wheat. Less liquid commodities are not included, such as coffee and sugar.
The new ETF should make it easier for individual investors to invest in futures and help with diversification in global commodities. This new development for ETFs could mean more opportunities with futures contracts.
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