Specifically, the commodities ETF tries to reflect the performance of the SummerHaven Dynamic Commodity Index Total Return Index, which consists of 14 commodity futures. The index is reformulated each month from 27 possible futures contracts. The 14 selected contracts are equally weighted and represent six sectors: Energy (WTI crude oil, Brent crude oil, natural gas, heating oil, gasoil, RBOB gasoline), 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).
The portfolio currently consists of the following futures contracts: Crude Oil (Brent) FEB19, Gas Oil DEC 18, Live Cattle JUN18, Crude Oil (WTI) MAR19, Heating Oil MAY18, Soybean Meal OCT18, Nickel APR18, Copper FEB19, Tin MAY18, Cocoa MAY18, Zinc AUG18, Gold AUG18, Sugar(#11) MAY18 and Cotton JUL18.
“We think if you are looking for inflation protection and diversification, USCI is the one to look at,” Love added.
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