Probably not so much – that the CFTC was looking at this issue hasn’t exactly been a secret, so ETF providers have had plenty of time to prepare for whatever proposal would ultimately be handed down. [Commodity ETFs: What You Should Know.]
Some ETFs already have position limits as a result of past actions by the CFTC. For example, PowerShares DB Agriculture (NYSEArca: DBA) used to consist of futures contracts on just four commodities: wheat, sugar, soybeans and corn. These days, it holds far more than that, including cocoa and coffee.
If these proposals get implemented next year alongside the Dodd-Frank Financial Overhaul bill, it’s likely that we’ll see more changes in agriculture, metals and energy ETFs that use futures contracts or swaps to achieve their positions.
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