US Commodity Funds to Introduce Metals ETF Tuesday
US Commodity Funds, the ETF sponsor behind the US Oil Fund (NYSE: USO) and the US Natural Gas Fund (NYSE: UGA), among others, will introduce the United States Metals Index Fund (NYSE: USMI) on Tuesday.
USMI will track the SummerHaven Metals Index, which is comprised of 10 metals futures contracts that are selected monthly.
The Metals Index is a metal sector index designed to broadly represent industrial and precious metals while overweighting the components that are assessed to be in a low inventory state and underweighting the components assessed to be in a high inventory state. The Metals Index consists of six (6) base metals and four (4) precious metals. The base metals are aluminum, copper, zinc, nickel, tin, and lead. The precious metals are gold, silver, platinum, and palladium. Each metal is assigned a base weight based on an assessment of market liquidity and the metal's overall economic importance, according to the fund's prospectus.
At the end of May, US Commodities Fund had 11 ETFs with over $2.6 billion in assets under management, according to ETF Industry Association data.
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