Jefferies Planning Two More Commodities ETFs
About: Jefferies, CRB investment strategies, Jefferies TR/J CRB Commodity Index ETF (Pending:CRB), Jefferies Commodity Real Return ETF (RRET), Commodities Futures Trading Commission, ETFs, exchange traded funds (ETFs), ETF Profit Report
Jefferies has announced plans for two more commodities-based ETFs to add to its stable of ETFs that use CRB investment strategies. The Jefferies TR/J CRB Commodity Index ETF will trade on the New York Stock Exchange under the ticker “CRB” and the Jefferies Commodity Real Return ETF will trade on the NYSE under the ticker “RRET.”
The new ETFs represent a departure from Jefferies' previously issued commodities ETF. Those ETFs have focused on equities, but CRB and RRET will invest in futures contracts, specifically contracts for 19 commodities including aluminum, copper, coffee, cocoa, gold, crude oil, cotton, heating oil, nickel, silver, sugar, gasoline, wheat and orange juice, among others.
CRB is tied to an index that tracks front-month contracts for the 19 commodities while RRET tracks an index that follows contracts that will be included in the CRB index in three months. The ETFs will also feature some bonds to make their approach more conservative, generate some income and hedge against inflation.
The Commodities Futures Trading Commission has limited position size for commodities ETFs and that has affected the ability of such ETFs to issue new shares. The Jefferies ETFs will have expense ratios of 0.75%.
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