ETF Spotlight on UBS E-TRACS CMCI Livestock ETN (NYSEArca: UBC), part of a weekly series.

Assets: $8.5 million

Objective: Tracks the UBS Bloomberg CMCI Livestock Total Return Index

Holdings: UBC holds futures contracts; the fund is 55.6% live cattle, 44.4% lean hogs

What You Should Know

  • UBC is the top-performing E-TRACS fund year-to-date, up 6.1%
  • Has an expense ratio of 0.65%
  • As an exchange traded note (ETN), it’s a debt instrument backed by the full faith and credit of the issuer [7 Differences Between ETFs and ETNs.]
  • The ETN matures on April 5, 2038

The Latest News

  • Hogs are seen as having positive fundamentals these days. Pork prices have gained for two consecutive days. [Agriculture ETFs Grow from Spring Rains?]
  • Thinking about grilling out? You’re not a alone. Analysts believe that warmer temperatures will inspire more people to fire up the grill, upping the interest for fresh pork.
  • Cattle is more mixed, reports the Cattle Network. Fewer cattle are up for sale this week and packers are expecting profits. On the downside, some feel that cattle prices have topped out, so there could be some decline. [Sugar ETN Goes from Sweet to Bitter.]
  • The livestock sector is under fire by environmentalists. The sector was accused of being responsible for 18% of all greenhouse gas emissions. This could be something to watch, because it could have an impact on funds that are heavily invested in the sector. [Green ETFs: Broad Exposure the Way to Go?]

For past ETF Spotlights, visit our ETF Spotlight page.

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.