Deutsche Bank and PowerShares Capital Management LLC have listed seven PowerShares DB Commodity Sector exchange-traded funds on the American Stock Exchange.
The funds aim to offer investors intelligent access to commodities through the Optimum Yield versions of the Deutsche Bank Liquid Commodity Index sub indexes. Optimum Yield seeks to minimise the effects of negative roll yield when markets are in contango and maximise the effects of positive roll yield when markets are backwardated. The funds will enter into long exchange-traded commodity futures positions and will also generate interest on cash and United States treasury securities held as collateral for the futures contracts they hold.
“The launch of seven new commodity funds marks a significant milestone in the evolution of commodities as an accessible asset class for a wider range of investors,” says Kevin Rich, the Chief Executive Officer of DB Commodity Services LLC, the managing owner of the new funds. “These sector funds offer an intelligent and effective investment tool for investors who are allocating to commodities for diversification, using commodities to hedge or taking a view on the direction of commodities and we are pleased to bring them to investors.”
“PowerShares has been Leading the Intelligent ETF Revolution by providing investors institutional caliber products through the replication of enhanced indexes,” adds Bruce Bond, the Chief Executive Officer of PowerShares Capital Management LLC. “The PowerShares DB suite of currency and commodity funds extends this concept by giving investors cost-effective and convenient access to intelligent indexes on asset classes that previously have been difficult to invest in.”