i got the following blurb from a free e-zine i get.

what do you think about this?

-ja

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A new Exchange Traded Fund (ETF) has hit the market. The Deutsche Bank Commodity Index Tracking Fund (DBC).

This ETF uses futures contracts to mirror the performance of the Deutsche Bank Liquid Commodity Index, which is tied to crude oil, heating oil, gold, aluminum, corn and wheat. This is significant because it is the first time there has been an ETF based on futures contracts.

The Deutsche Bank tracking index has base weights of 35% crude oil, 20% heating oil, 12.5% aluminum, 10% gold, and 11.25% each in corn and wheat. The index is rebalanced each November. Short-term Treasury bills provide collateral for the futures. The fixed-income portion of the portfolio generates yield, which according to Deutsche Bank could be used to offset fees.

This new ETF has high fees, an expense ratio of 1.5%. But the yield from the fixed-income portion of the portfolio may offset these fees somewhat.

Yes, I've had my eye on that one. I think it's great. Until now, you had to open a futures account and roll the contracts over when they expire. Or you had to put you money in a managed mutual fund (except with Roger's fund that got in trouble with the Refco mess). So a commodity ETF is needed.

I wish it included other commodities like cotton, sugar, coffee, cattle, etc. But the ETF's are going to start coming hot and heavy. So I'm sure there will be plenty to choose from.

Larry

i noticed too that profunds has a SHORT precious metals fund & a SHORT energy fund now.

no thank you!

-ja