Elkhorn Adds To ETF Stable With 2 Unique Commodities Funds

Elkhorn Investments added to its growing lineup of exchange-traded funds Wednesday with the addition of two smart beta commodities funds.

DWA

The Elkhorn Commodity Rotation Strategy ETF DWAC is the latest ETF to follow Dorsey, Wright & Associates (DWA)'s popular momentum-based strategy.

“The Elkhorn Commodity Rotation Strategy ETF’s commodity exposure is based on a model developed by DWA using their proprietary Relative Strength methodology. The Model evaluates a universe of 21 commodities and provides equal-weighted exposure to the five commodities exhibiting the highest relative strength. The ETF also utilizes an intelligent roll strategy to mitigate the potential negative impact of contango, and invests in a short duration portfolio of highly liquid, high quality bonds,” according to Elkhorn.

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The commodities currently found in DWAC are coffee, cotton, sugar, silver and zinc. Other issuers using DWA strategies to back ETFs include First Trust, PowerShares and State Street Global Advisors.

DWAC charges 0.99 percent a year, or $99 on a $10,000 investment.

RCOM

The Elkhorn Fundamental Commodity Strategy ETF RCOM is actively managed like DWAC. RCOM will look to top the Dow Jones RAFI Commodity Index.

“RCOM is designed to be a fundamental factor-weighted, broad-market commodity strategy with a modified dynamic roll to diminish the negative effects of contango in the futures market – contango refers to the effect where later-dated futures contracts are more expensive than near-term contracts,” according to ETF Trends.

Soybeans, copper and gold combine for over 62 percent of RCOM's weight. The new ETF also features allocations to Brent crude, West Texas Intermediate, sugar and natural gas, among others. RCOM charges 0.75 percent per year.

Other Elkhorn ETFs

Elkhorn's other ETFs include the Elkhorn S&P 500 Capital Expenditures Portfolio CAPX and the Elkhorn S&P High Quality Preferred ETF EPRF.

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