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BNP Paribas Jumps In With Commodity ETF (BNPC)

By: ETFdb
French banking behemoth BNP Paribas has become the latest financial institution to jump into the ETF industry, rolling out an exchange-traded commodity product this week. The new STREAM S&P Dynamic Roll Global Commodities Fund (BNPC) will seek to replicate the S&P GSCI Dynamic Roll Excess Return Index, a broad-based index of commodity futures that uses a flexible methodology to tilt the portfolio depending on prevailing market conditions. Like many commodity ETPs now on the market, BNPC will strive to maximize the yield from rolling futures contracts in backwardated markets and minimize the adverse impact of the roll process when futures markets are contangoed. In seeking to achieve this objective, BNPC will generally oscillate between near-dated futures contracts and longer-dated contracts. When markets are contangoed, the index will generally consist of longer-dated futures, thereby minimizing the roll frequency and hopefully the adverse impact associated with that process. For commodities with backwardated futures markets, [...] Click here to read the original article on ETFdb.com. Related Posts: When Structure Matters: ETF, ETN, Or Other? Commodity ETF Investing: Five Factors To Consider Seven Surprising ETF Performance Comparisons Beyond DBC: Three Promising Commodity ETF Options ETF Plays For A Falling U.S. Dollar
French banking behemoth BNP Paribas has become the latest financial institution to jump into the ETF industry, rolling out an exchange-traded commodity product this week. The new STREAM S&P Dynamic Roll Global Commodities Fund (BNPC) will seek to replicate the S&P GSCI Dynamic Roll Excess Return Index, a broad-based index of commodity futures that uses a flexible methodology to tilt the portfolio depending on prevailing market conditions. Like many commodity ETPs now on the market, BNPC will strive to maximize the yield from rolling futures contracts in backwardated markets and minimize the adverse impact of the roll process when futures markets are contangoed. In seeking to achieve this objective, BNPC will generally oscillate between near-dated futures contracts and longer-dated contracts. When markets are contangoed, the index will generally consist of longer-dated futures, thereby minimizing the roll frequency and hopefully the adverse impact associated with that process. For commodities with backwardated futures markets, [...]

Click here to read the original article on ETFdb.com.

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