ETFS lists fund tracking commodity three month forwards

ETF Securities (ETFS) has listed a fund tracking commodity three month forward contracts on the London Stock Exchange.

The ETFX DJ-UBS All Commodities Forward 3 Month fund invests in a basket of 19 forward commodity futures, represented in the DJ-UBSCI F3 index. This benchmark provides exposure to futures contracts three months ahead on the DJ-UBSCI index. ETFS says the F3 index is weighted two-thirds to liquidity and one third to production. The firm says this index has historically exhibited high correlation with spot returns, while reducing the impact of roll yield, as the shape of the futures curve can vary and therefore impact upon returns. For example, the short end of the yield curve tends t...