Friday, February 24, 2006

Commodities Exposure?

Seems like an easy way to get some diversification if you want to trade commodities without losing your shirt.

On Jan. 27, an easily accessible exchange-traded product from Deutsche Bank called the DB Commodity Index Tracking Fund will be listed on the American Stock Exchange under the ticker DBC.

However, its composition will be much narrower than the Rogers product, with exposure to only six commodities. It will have 35% in light sweet crude, 20% in heating oil, 12.5% in aluminum, 11.25% in corn, 11.25% in wheat and 10% in gold.

However this ETF from our friends at iShares looks even better when it comes out:

iShares will have its own commodities ETF soon and that may end up being a better way to go, given the narrow scope of the Deutsche Bank fund.

Maybe with this ETF you too can feel like Mortimer and Randolph Duke from Trading Places and trade in Frozen Concentrated Orange Juice (FCOJ) futures.

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