The French bank BNP Paribas has launched the STREAM S&P Dynamic Roll Global Commodities Fund [BNPC] which will seek to replicate the S&P GSCI Dynamic Roll Excess Return Index, a broad-based index of commodity futures that uses a flexible methodology to tilt the portfolio depending on prevailing market conditions. The ETF will attempt to maximize the yield from rolling futures contracts in backwardated markets and minimize the adverse impact of the roll process when futures markets are in contango. The expense ratio will be an estimated 0.86%.
On June 7, PIMCO filed paperwork seeking to create three more actively managed fixed-income ETFs. Each is outlined in more detail below:
The planned PIMCO Diversified Income ETF would invest in a diversified basket of debt securities of varying maturities, which may be represented by forwards. The anticipated ETF’s portfolio duration would vary from three to eight years and be permitted to hold both investment-grade and high-yield debt.
The planned PIMCO Low Duration ETF would invest primarily in investment-grade debt, with an average portfolio duration of one to three years.
The planned PIMCO Real Return ETF would invest in inflation-indexed bonds of differing maturities issued by both the United States and other governments. The proposed ETF would hold up to ten percent of its assets in high-yield debt.