UBS Investment Bank has launched the ETRACS DJ-UBS Commodity Index 2-4-6 Blended Futures ETN (BLND), which the is being touted as the first exchange-traded note linked to the next generation of the DJ-UBS Commodity Index.
The Index is constructed as an equally-weighted basket of the two-month, four-month and six-month forward versions of the Dow Jones-UBS Commodity Index, providing diversification across the commodity price curve of each of the 20 commodities that currently comprise the index.
"Negative roll yield adversely impacts returns on exchange-traded products based on commodity futures positions," said Christopher Yeagley, Managing Director and US Head of Equity Structured Products.
"The ETRACS DJ-UBS Commodity Index 2-4-6 Blended Futures ETN -- the first ETN based on the second generation of the benchmark Dow Jones-UBS Commodity index - gives investors the opportunity to minimize roll risk through its diversified exposure to the Index's longer dated futures positions."
