Sections
Fees Up On Some PowerShares DB ETFs
December 09, 2009 6:00 am
|
Come Jan. 4, investors will have to shell out a little more in management fees for some PowerShares DB commodities-linked ETFs. The two most popular PowerShares DB ETFs—the PowerShares DB Agriculture Fund (NYSEArca: DBA) and the PowerShares DB Commodity Index Tracking Fund (NYSEArca: DBC)—will see their expense ratios rise from 0.75 percent to 0.85 percent. The change in the cost structure is being attributed in part to a CFTC decision earlier this year to clamp down on the funds' role in the agricultural futures market. For the first three years of their existence, both DBA and DBC were "exempt" from federal position limits in the agricultural space. But as pressure mounted on the commission to crack down on commodity investing, it revoked these exemptions. As a result, both DBA and DBC had to significantly revamp their portfolios; in the case of DBA, it expanded the number of commodities it owned from four to 11. That may explain in part the fee hike. But DBA and DBC aren't the only funds whose costs are going up. In a filing with the SEC, Deutsche Bank announced that annual management fees for PowerShares DB Oil Fund (NYSEArca: DBO), PowerShares DB Gold Fund (NYSEArca: DGL) and PowerShares DB Silver Fund (NYSEArca: DBS) will go from 0.50 percent to 0.75 percent. In addition, fees on the PowerShares DB U.S. Dollar Index Bullish Fund (NYSEArca: UUP) and the PowerShares U.S. Dollar Index Bearish Fund (NYSEArca: UDN) will rise from 0.50 percent to 0.75 percent as well. The latter case is the most puzzling. For all the commodity funds, you could argue that ongoing concerns about regulatory pressures have raised the costs of operating in the commodity futures markets. But UUP and UDN invest in currency futures, which are not subject to any new regulatory actions. The funds also have been attracting significant assets recently, making the fee hike that much more puzzling. Fees for the PowerShares DB Energy Fund (NYSEArca: DBE), PowerShares DB Precious Metals Fund (NYSEArca: DBP) and PowerShares DB Base Metals Fund (NYSEArca: DBB) will remain unchanged. You can see the filing here.
|
Short-Seller’s Guide To GLD
Gold, despite its recent rebound, has gotten clobbered over the past three months.Looking Beyond VWO And EEM
Broad-based, cap-weighted ETFs were the way to play emerging markets over the past decade. But it’s time for investors to become more strategic and look beyond VWO and EEM.-
May 24, 2012
Best/Worst Daily ETF Returns: Gold Miners Shine Gold miner funds bounced back on Wednesday, May 23, as the markets mostly took a breather from recent selling. -
May 24, 2012
Short-Seller’s Guide To GLD Gold, despite its recent rebound, has gotten clobbered over the past three months. -
May 23, 2012
Best/Worst Daily ETF Returns: Commodities Fall CRUD fell 6.89 percent on Tuesday, May 22, the leading edge of a broad decline in commodities prices. -
May 22, 2012
Best/Worst Daily ETF Returns: Energy Shines CRUD was the best-performing ETF on Monday, May 21, boosted by policymakers’ search for ways to support the global economy. -
May 21, 2012
First Trust Plans Broad Futures ETF First Trust plans broad futures ETF, though it doesn’t lay out strategies for dealing with contango.
|
|
|
|
JP Morgan & ETN Credit Risk
Paul & Ugo discuss the implications of J.P. Morgan's $2 billion loss, the European debt crisis and what it means for ETN investors.
See All

