Although GCC has performed well this year, critics are often eager to point out the ETF is not reflective of the true commodities universe. For example, oil and gold, two of the most heavily traded commodities, receive essentially the same allocations in the ETF as more thinly traded corn, coffee and cocoa. [One-Stop Shop for Commodities Investors]

“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. In addition, GCC is rebalanced every day in order to maintain each commodity’s weight as close to 1/17th of the total as possible,” according to Greenhaven.

S&P Dow Jones Indices did not say in its statement if the new Dow Jones Commodity Index will immediately used in conjunction with an exchange traded product.


ETF Trends editorial team contributed to this post.