ETF Chart of the Day: Commodities Call

In a nutshell, the fund’s methodology is tied to the SummerHaven Dynamic Commodity Index, which is rules-based and sifts through twenty-seven possible Commodity futures contracts but ultimately invests in fourteen dependent if they meet quantitative criteria, then “equally weighted and represent six sectors: Energy (WTI crude oil, Brent crude oil, natural gas, heating oil, gasoil), Precious Metals (gold, silver, platinum),
Industrial Metals (aluminum, copper, lead, nickel, tin, zinc), Grains (corn, soybeans, soybean meal, soybean oil, wheat), Livestock (live cattle, feeder cattle, lean hogs), and Softs (coffee, cocoa, cotton, and sugar).

At multi-month lows across a broad swath of commodities, it would not be surprising to see investors add to funds that have performed well in the past such as USCI and DBC for example.

United States Commodity Index Fund

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