“Commodity investments have traditionally provided investors with attractive total returns and strong diversification characteristics, especially during periods of high inflation,” Rob Guttschow, CFA and Senior Portfolio Manager of the fund, said in the press release. “By tactically rotating between different commodity investments and managing the overall portfolio volatility, the fund may provide investors commodity exposure in a more attractive manner. Additionally, by attempting to pick the most attractive maturity futures contract for each commodity, FTGC may provide higher returns over a market cycle.”
Guttschow is referring to diminishing the negative effects of rolling front month contracts in a contangoed market – a fund can lose money if it sells a front month contract before maturity and purchases a more expensive later-dated contract.
The active ETF has a 0.95% expense ratio.
For more information new fund products, visit our new ETFs category.
Max Chen contributed to this article.