Db x-trackers delivers commodity ETF

Db x-trackers, the exchange-traded fund arm of Deutsche Bank, has launched its commodity ETF on the London Stock Exchange (LSE) tracking the Deutsche Bank Liquid Commodity Index - Optimum Yield (DBLCI OY Balanced). The db x-trackers DBLCI OY Balanced ETF is Ucits III compliant and can be traded in multiple currencies. The ETF was initially launched in July 2007 in Europe and has accrued assets of over £150 million.

The DBLCI OY Balanced index comprises a diversified basket of 14 commodities futures contracts, including oil, gas, aluminium, copper, zinc, gold, silver, wheat, corn, soybean and sugar. The index is base weighted as energy 35%, base metals 18%, precious metals 17% and agriculture 30%.

The index also employs an optimised yield methodology, which aims to optimise returns when the underlying futures contracts are rolled at their expiry and benefit from differences between spot and future prices for