United States Commodity Funds, the firm behind the innovative USCI, rolled out another product created through its partnership with SummerHaven this week. The new United States Copper Index Fund (CPER) will be linked to the SummerHaven Copper Index Total Return, a single-commodity index consisting of copper futures contracts traded on the COMEX exchange. The index is constructed and maintained with the goal of minimizing the adverse impact of contango on returns while utilizing futures contracts in the liquid portion of the futures curve. The methodology behind the index is relatively straightforward, and based on observable market prices at the end of each month. First, at the end of each month it is determined whether the copper market is in backwardation or contango, and the annualized percentage price difference between the next-to-expiration copper futures contracts and each of the next four closest-to-expiration futures contracts is calculated. Based on these indicators, the [...] Click here to read the original article on ETFdb.com. Related Posts: Commodity ETF With Asian Twist On Tap One Year Later: USCI Remains An Intriguing Commodity ETF Inflation ETF Special: 25 ETF Ideas To Fight Rising Prices ETF Insider: Recapping A Wild Week ETF Insider: Debuting Our All-ETF Portfolio
United States Commodity Funds, the firm behind the innovative USCI, rolled out another product created through its partnership with SummerHaven this week. The new United States Copper Index Fund (CPER) will be linked to the SummerHaven Copper Index Total Return, a single-commodity index consisting of copper futures contracts traded on the COMEX exchange. The index is constructed and maintained with the goal of minimizing the adverse impact of contango on returns while utilizing futures contracts in the liquid portion of the futures curve. The methodology behind the index is relatively straightforward, and based on observable market prices at the end of each month. First, at the end of each month it is determined whether the copper market is in backwardation or contango, and the annualized percentage price difference between the next-to-expiration copper futures contracts and each of the next four closest-to-expiration futures contracts is calculated. Based on these indicators, the [...]
Click here to read the original article on ETFdb.com.
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