ProShares, the Maryland-based exchange-traded fund issuer known for its range of inverse and leveraged exchange-traded funds, expanded its offering of alternative investment products recently with the launch of the ProShares Managed Futures Strategy (FUTS). Managed futures investment strategy involves investing in futures contracts across asset classes such as commodities, currencies and fixed income instruments. Investing in future contracts is a …
New ETFs On The Block: RBS Launches Five Rogers Commodity ETNs
Given the weak performance of the stock markets ahead of budget negotiations, many investors are looking for exposure in commodities. Although there are dozens of ETFs and ETNs in this segment, most fail to deliver adequate returns as they focus on front-month futures and roll contracts continually. This strategy can backfire if markets are in Contango, a condition where …
New ETFs On The Block: The BNP Paribas STREAM S&P Dynamic Roll Global Commodities Fund (BNPC)
The latest entrant in the ETF industry is French banking giant BNP Paribas. The French bank has launched an exchange-traded commodity fund that is based on a contango-fighting strategy, i.e. it tries to minimize negative impact of the roll process when futures markets are in contango while maximizing yields from rolling futures contract when the market experiences backwardation. The BNP …