New Commodity ETN is Cyclical | ETF Trends

The ELEMENTS exchange traded notes (ETNs) are adding a new and different commodity-based product to its line-up. The note tracks the S&P Commodity Trends Indicator Total Return Index (S&P CTI), which includes 16 physical commodities futures, divided into six subsectors.

The twist on S&P CTI ELEMENTS ETN (LSC) is that it looks at commodities and their cyclical movements. The S&P CTI takes long or short positions in each sector based on how current prices compare to a moving price average. Its intent is to capture the rise and fall of rising or deflating prices in the commodities market.

This ETNs release comes at a time when the commodities sector is a key investment theme of the day.

LSC joins other commodity-related ETNs such as:

  • E-TRACS UBS Bloomberg CMCI Index ETN (UCI)
  • iPath GSCI Commodity Total Return Index ETN (GSP)
  • iPath Dow Jones AIG Agriculture ETN (JJA)

The opinions and forecasts expressed herein are solely those of Tom Lydon, and may not actually come to pass. Information on this site should not be used or construed as an offer to sell, a solicitation of an offer to buy, or a recommendation for any product.