Asjylyn Loder for Bloomberg reports that the ETF bought an off-market gas swap for the first time as a sign that it has outgrown the main markets for fuel futures and swaps.
The $4.4-billion fund purchased a $250 million bilateral swap that isn’t subject to the size limits imposed by the New York Mercantile Exchange.
A commodity swap entails the user of a commodity would secure a maximum price and agree to pay a financial institution this fixed price. The user gets paid according to the market price of the commodity, according to Investopedia.
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