Van Eck is expanding their product range for commodities and enhancing the method of their rolling of futures contracts.
The proposed Van Eck CM Commodity Index Fund (NYSEArca: CMCAX) invests in futures across 26 different types of commodities. Although this one’s a mutual fund, Van Eck also plans on enhancing its ETF family as well. The provider also plans on spreading its automatic rolling of futures contracts over a longer period, says Murray Coleman for Barron’s. [What’s Ahead for Active ETFs In 2011?]
Since funds don’t want to actually take delivery of the goods, index-based mutual funds and ETFs systematically sell old contracts before they’re about to expire and buy new ones. CMCAX tracks an index that’s designed to spread pricing risks across a bigger set of futures contracts with differing expiration dates, according to Van Eck.
Tisha Guerrero contributed to this article.