U.S. Commodities Funds To Introduce Three New ETFs

United States Commodity Funds, the ETF issuer behind the infamous U.S. Oil Fund

and the U.S. Natural Gas Fund

, has filed plans to introduce three new ETFs that attempt to mitigate the impact of contango, which has been a major problem for funds like USO and UNG. The three funds include the United States Agriculture Index Fund, the United States Metals Index Fund and the United States Copper Index Fund. The new funds will follow in the footsteps of the United States Commodity Index Fund

, which uses futures with the heaviest backwardation or most mild levels of contango. The new funds will use contango screens to minimize the impact of front-month near-expiration contracts that are more expensive than longer-dated contracts.