With equity markets dropping returns left and right, Credit Suisse’s new launches in the commodity sector are a bright spot in the otherwise gloomy global market outlook. Looking to gain access to the total commodity space, these two new funds could be a strong portfolio hold for overall commodity market exposure [see ETF Database Launch Center].
Credit Suisse has already launched two new funds earlier this year–the Gold Shares Covered Call ETN (GLDI, n/a) and Silver Shares Covered Call ETN (SLVO, n/a)–and these two new ETNs will offer a wider range of commodity exposure through different investment strategies [also see Sector ETFs: Biggest Winners & Losers YTD].
- Credit Suisse Commodity Benchmark ETN (CSCB): This fund will offer exclusively long exposure to a monthly re-balanced portfolio of rolling futures contracts on a wide range of physical commodities, including energy, livestock, agriculture, and both industrial and precious metals. The commodities included in the index are determined based on global production and market liquidity.
- Credit Suisse Commodity Rotation ETN (CSCR) : Much like CSCB, the Rotation ETN will offer exclusively long exposure to rolling futures contracts on a wide range of physical commodities. Unlike the above ETN, CSCR searches for contracts with the highest amount of backwardation to limit exposure to contango [also check out the Visual History Of The Dow Jones Industrial Average].
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Disclosure: No positions at time of writing.