Easy As 2-4-6: UBS Launches New Commodity ETN (BLND)

UBS, one of the largest issuers of ETNs including a number of commodity products, is the latest to make an addition to the fast-growing ETP lineup. The new ETRACS DJ-UBS Commodity Index 2-4-6 Blended Futures ETN (BLND) will take a unique approach to delivering exposure to commodity futures. The underlying Dow Jones-UBS Commodity Index 2-4-6 Forward Blend Total Return consists of futures contracts diversified across multiple maturities–specifically two, four, and six months out. Those three maturities will be equally weighted [see also Five Questions To Ask When Buying An ETF]. Spreading exposure across the maturity curve could potentially reduce the adverse impact of “roll yield” close to spot, which can result from contango in futures markets, while still offering exposure to a diversified basket of natural resources futures contracts. The potential trade-off could come in the form of reduced sensitivity to changes in spot prices; the further down the curve [...] Click here to read the original article on ETFdb.com. Related Posts: Beyond DBC: Three Promising Commodity ETF Options ETF Plays For A Falling U.S. Dollar ETF Tax Tutorial: Complete List Of ETFs That Issue A K-1 ETF Insider: France Downgrade Erodes Confidence ETF Insider: Beware Of Lingering Euro Fears