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UCI

UBS, one of the largest issuers of ETNs including a number of commodity products, is the latest to make an addition to the fast-growing ETP lineup. The new ETRACS DJ-UBS Commodity Index 2-4-6 Blended Futures ETN (BLND) will take a unique approach to delivering exposure to commodity futures. The underlying Dow Jones-UBS Commodity Index 2-4-6 Forward Blend Total Return consists of futures contracts diversified across multiple maturities–specifically two, four, and six months out. Those three maturities will be equally weighted [see also Five Questions To Ask When Buying An ETF].

Spreading exposure across the maturity curve could potentially reduce the adverse impact of “roll yield” close to spot, which can result from contango in futures markets, while still offering exposure to a diversified basket of natural resources futures contracts. The potential trade-off could come in the form of reduced sensitivity to changes in spot prices; the further down the curve contracts are, the weaker the correlation to the underlying commodity tends to be (though long-dated futures contracts still generally exhibit a fairly strong relationship with spot prices). [click to continue…]

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May ETFdb Category Kings: Best Performing ETFs

by on June 3, 2011

The month of May was a generally disappointing stretch for investors, as both international and domestic equity markets struggled to overcome obstacles new and old. Commodities, which had been a nice source of absolute returns for much of the last year, fell on hard times as well; precious metals went into a brief freefall, and most other natural resources saw price declines as well.

May demonstrated the importance of a meaningful allocation to fixed income within any long-term portfolio, as most bond ETFs turned in nice gains during the month. The following tables highlight the best performers from each ETFdb Category during the month of May [ETFdb Pro members can download spreadsheets showing performance and expense data for the entire ETF universe]. [click to continue…]

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Beyond DBC: Three Promising Commodity ETF Options

by on August 2, 2010

The incredible growth in ETF assets in recent years has come not from the equity corner of the investable asset universe, but from an asset class that generally receives a very minor allocation in long-term portfolios (if any at all). Cash inflows into commodity ETFs in the first half of the year topped $18 billion, [...]

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ETF Plays For A Falling U.S. Dollar

by on November 2, 2009 | Updated June 24, 2010

As U.S. equity markets have soared in recent months, the dollar has steadily declined against most of its major rivals, recently falling below the key $1.50 level against the euro for the first time since August of last year. This extended fall has investors wondering if the dollar’s decline reflects temporary volatility, or a long-term [...]

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UBS Launches New Commodity ETN

by on October 29, 2009

UBS, under its E-TRACS brand, launched a new exchange-traded note (ETN) yesterday that offers exposure to the DJ-UBS Commodity Index Total Return. This benchmark is designed to provide diversified commodity exposure based on the economic significance of each commodity. The index measures the collateralized returns on a basket of 19 commodity futures contracts representing energy, [...]

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