A new exchange-traded product (ETP) tracking agricultural commodities was introduced today by the United States Commodity Index Funds Trust.
The United States Agriculture Index Fund (NYSE:USAG) tracks a fully collateralized portfolio of 14 agriculture contracts: six grains, five softs and three livestock contracts. The weighting of each contract is adjusted monthly based in order to deliver the highest exposure to those contacts that have the lowest inventory.
USAG is linked to the SummerHaven Dynamic Agriculture Index which is comprised of 14 eligible agriculture futures contracts that are selected on a monthly basis based on quantitative formulas developed by SummerHaven Indexing. The relative weighting of the Benchmark Component Agriculture Futures Contracts will change on a monthly.
According to the prospectus, USAG’s annual expenses are 0.95%.
In other new ETF offerings, Van Eck Global introduced the Market Vectors International Fallen Angel High-Yield Bond (NYSE:ANGL). The fund owns corporate bonds that were rated investment grade at the time of their original issuance but which have since been downgraded below investment grade status.
ANGL is linked to the Bank of America (NYSE:BAC) Merrill Lynch US Fallen Angel High Yield Index and has a net annual expense ratio of 0.40%.