The U.S. dollar is weaker to start 2017 and that is prompting some investors to allocate capital to commodities, including commodities exchange traded products, such as the PowerShares DB Commodity Index Tracking Fund (NYSEArca: DBC).
DBC, which offers exposure to multiple commodities, is among the commodities exchange traded products that can deliver for investors if markets readjust toward the idea that the U.S. dollar is due for a near-term pullback and that global economic growth will support increased commodities demand.
DBC currently features exposure to about 15 commodities. Those include heavily traded commodities such as gold, silver and West Texas Intermediate oil futures, as well as more obscure commodities fare such as sugar, wheat and zinc.
“Global commodity flows on a net basis in January rose by $3.3 billion, bringing total commodity index assets under management (AUM) to $172.3 billion, according to a new report by RBC Capital Markets commodity strategist Christopher Louney,” reports CNBC.
A prolific asset gatherer among commodities exchange traded products this year has been the PowerShares DB Optimum Yield Diversified Commodity Strategy Portfolio (NasdaqGM: PDBC). PDBC has added over $383 million in new assets year-to-date.