Daily ETF Watch: Active Commodity Filing

December 08, 2015

ProShares has filed paperwork with the Securities & Exchange Commission on an actively managed commodity ETF. The ProShares S&P GSCI Smart Commodity Strategy ETF is the latest in a series of filings from other providers that outline plans for such funds and include subsidiaries based in the Cayman Islands for tax purposes. Van Eck and Elkhorn Investments have both made similar filings in the past few months.

The ProShares fund will seek to outperform the S&P GSCI Dynamic Roll Risk Weight Index, which combines a dynamic roll strategy with an equal-risk weighting approach. The index covers 24 commodities from five different sectors and seeks to weight them so that each sector contributes an equal amount of risk to the index. The fund will invest in its commodity portfolio via a subsidiary headquartered in the Cayman Islands.

The fund will also invest in an actively managed portfolio of high-quality corporate debt as part of its strategy for boosting returns.

The filing didn’t include a ticker or an expense ratio, or mention a listing exchange.

Contact Heather Bell [email protected].

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