A weaker dollar is providing a lift to commodities prices and some investors are flocking to commodities exchange traded funds. Just look at the ETFS Bloomberg All Commodity Strategy K-1 Free ETF (NYSEArca: BCI), which topped $125 million in assets under management.
To be precise, as of Jan. 31st, BCI had $135.9 million in assets under management.
BCI tries to provide long-term capital appreciation that exceeds the performance of the Bloomberg Commodities Index. It may not invest in all the components of the benchmark but will hold similar interests to those included in the index, along with short-term investment-grade fixed-income securities, money market instruments, certain bank instruments and cash or other cash alternatives. The underlying Bloomberg Commodities Index tracks the price of rolling positions in a basket of commodity futures with a maturity between 1 and 3 months.
“ETF Securities launched BCI on March 30, 2017,” said the issuer in a statement. “It was the first such ETF to respond to a growing demand from US investors and their advisors for portfolio diversification with a low- cost, straight-forward option to gain commodity exposure. With an expense ratio of 0.29%, BCI is the lowest cost, K-1 free ETF currently available.”
Energy and agriculture commodities and industrial metals combine for about 80% of BCI’s roster with precious metals and livestock combining for the remainder of the ETF’s lineup. Gold, copper, Brent crude, West Texas Intermediate crude and corn are the top five individual holdings in BCI.