Daily ETF Watch: New Active Commodity Fund

Van Eck plans actively managed commodity ETF.

Reviewed by: Heather Bell
Edited by: Heather Bell

Just a few days after Elkhorn Investments filed for two actively managed commodity ETFs, Van Eck has put a similar fund into registration. Although actively managed, the Market Vectors Long/Flat Commodity ETF will invest primarily in the components of the Morningstar Long/Flat Commodity Index, adjusting its portfolio according to a rules-based momentum approach, the prospectus said.

The benchmark index covers 20 commodities from the energy, agriculture, industrial metals, precious metals and livestock sectors. The fund will hold flat or long positions in the commodity futures represented in the index, though not in the same proportions.

The fund’s commodities futures portfolio will be held through a subsidiary based in the Cayman Islands, which conveys certain tax advantages. The commodities portion of the fund can comprise up to 25 percent of the fund’s total weight, while the remainder will be invested in a portfolio of high-quality fixed income, including Treasurys, money market funds and cash equivalents.

The filing did not include a ticker or expense ratio; however, the fund is slated to have its principal listing on the Nasdaq stock exchange.

Contact Heather Bell at [email protected].

Heather Bell is a former managing editor of etf.com. She has also held editorial positions at Dow Jones Indexes and Lehman Brothers. Bell is a graduate of Dartmouth college and resides in the Denver area with her two dogs.