One of the most interesting commodities ETFs on the market is the $480 million GreenHaven Continuous Commodity Index Fund (NYSEArca: GCC), which tracks an equal-weighted index.
Thomson Reuters recently tweaked the ETF’s tracking index by adding CME Soybean Oil and removing ICE Frozen Concentrated Orange Juice.
“Because of the equal weighting, GCC offers significant exposure to grains, livestock, and soft commodities and a lower energy weighting than many of its peers,” says GreenHaven, the fund manager. [A Deep Dive Into an Equal-Weighted Commodity ETF]
The tracking index holds 17 commodities in equal weights. The benchmark also recently changed from geometric averaging to arithmetic averaging and a five-day roll period to replace the one-day period, according to a regulatory filing.
The 17 commodity components of the Thomson Reuters index are continuously rebalanced to maintain the equal weight of 5.88%.
The recent moves were designed to ease investor use of the product and boost potential returns, Reuters reports.