ETF Chart of the Day: Commodities
March 9th, 2012 at 10:25am by Paul Weisbruch, Street One Financial
An ETF that likely has not hit the screens of most institutional managers but has been exceptionally active this week is U.S. Commodity Index Fund (NYSEArca: USCI). Typically trading about 148,000 shares per day, USCI saw more than 5 million shares exchange hands on Wednesday of this week, which by far is the most active session ever in this fund since its inception.
The ETF itself is designed to provide diversified exposure to commodities, and tracks the SummerHaven Dynamic Commodity Index. Once per month, the fund strategy selects 14 commodity futures based on a universe of 27, for investment in the fund.
The fund then re-balances monthly based on price action within a proprietary methodology.
Currently, top weightings in USCI include futures in Brent Crude Oil, NYMEX Crude Oil, Wheat Cocoa, Silver, Heating Oil, Gasoline, Gold, Gasoil, and Aluminum.
Compared to other diversified commodity based funds in the space, USCI has returned 7.28% year to date versus PowerShares DB Commodity (NYSEArca: DBC) up 8.64%, iShares GSCI Commodity (NYSEArca: GSG) up 8.09%, and GreenHaven Continuous Commodity Index Fund (NYSEArca: GCC) up 3.14%.
With the recent volume spike and likely a subsequent swelling of new assets in the fund, it is likely that USCI will garner more attention from institutional managers whom are looking to employ diversified commodity ETF strategies within their portfolios.
U.S. Commodity Index Fund