Another ETF just jumped into the market, as ALPS Funds
launched their newest fund Monday. The Thomson Reuters/Jefferies CRB Global Commodity Equity Index Fund
tracks a global index which deals specifically in energy, agricultural, and precious and raw metal companies.
The fund, which is sub-advised by Arrow Investment Advisors
charges a 65-basis-point annual expense ratio. ALPS sees the ETF as an alternative to traditional futures-based commodity ETFs, and hopes to avoid concerns over the rising price of commodities by investing in commodity-production companies, rather than commodity features. Two other funds, the Van Eck Market Vectors - Hard Assets Producers ETF
and the iShares North American Natural Resources Sector ETF
, characteristically use the same strategy.
The fund is ALPS Advisors' third ETF, coming after the recently released Equal Sector ETF
, which debuted in early July. The Cohen & Steers Global Real Estate ETF
was ALPS' first in the fund type, but they sub-advise other exchange-traded funds for companies such as Forward Management
and Emerging Global Advisors
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