The Wall Street Journal
's Ian Salisbury
this morning puts the
spotlight on a new commodity exchange-traded fund (ETF) called U.S. Commodity Index Fund
(USCI). The ETF's sponsor, SummerHaven Investment Managament
, counts Yale Management School Professor Geert Rouwenhorst
as one of its partners. Rouwenhorst's research has helped spark interest in commodities among small investors.
The fund is computer-driven and favors commodities with low inventories such as live cattle and soybeans, which are more prone to price spikes.
Salisbury compares the fund to the Path S&P GSCI Total Return Index ETN
(GSP), which has about 70 percent of its value tied to oil, heating oil, unleaded gas, and natural gas, with only about 3 percent linked to gold and silver.
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