An ETF that likely has not hit the screens of most institutional managers but has been exceptionally active this week is U.S. Commodity Index Fund (NYSEArca: USCI). Typically trading about 148,000 shares per day, USCI saw more than 5 million shares exchange hands on Wednesday of this week, which by far is the most active session ever in this fund since its inception.
The ETF itself is designed to provide diversified exposure to commodities, and tracks the SummerHaven Dynamic Commodity Index. Once per month, the fund strategy selects 14 commodity futures based on a universe of 27, for investment in the fund.
The fund then re-balances monthly based on price action within a proprietary methodology.
Currently, top weightings in USCI include futures in Brent Crude Oil, NYMEX Crude Oil, Wheat Cocoa, Silver, Heating Oil, Gasoline, Gold, Gasoil, and Aluminum.