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DBC, DBA To Diversify Holdings
September 30, 2009 5:40 pm
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The Commodity Futures Trading Commission’s effort to clamp down on the role of index investors continues to impact exchange-traded funds. On Wednesday, Sept. 30, Deutsche Bank announced that the PowerShares DB Commodity Index Tracking Fund (NYSEArca: DBC) and PowerShares DB Agricultural Commodity Index Fund (NYSEArca: DBA) would massively diversify the type and number of commodity futures they hold. DBC and DBA are two of the most popular commodity ETFs in the world, with $3.4 billion and $2.2 billion in assets, respectively. The funds until now have held concentrated positions in a select number of commodity futures: six for DBC and four for DBA. But with the CFTC threatening to enact position limits on a broad range of commodity futures—and with its recent decision to enforce existing position limits on agricultural futures for ETFs—Deutsche Bank has decided that the time is right to spread its bets. The moves will not alter the sector-level distribution in DBC; DBA, however, will make a significant move into livestock, taking on a 25% position in cattle and hogs. The changes in the portfolios will take place between Oct. 19 and Oct. 31. The old and new index weights are listed below.
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Inside ETFs: A Reality Check
The Inside ETFs conference last month was a great opportunity for an ETF analyst like me to escape my ivory tower.Summing Sector SPDRS = SPY?
You’d think owning the nine sector SPDRs in proportion to their weightings in the S&P 500 is a way to recreate SPY. But you’d be wrong.
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