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Stocks D / DB Commodity ETF

URL:  http://boards.fool.com/risks-26216501.aspx

Subject:  Risks? Date:  12/21/2007  9:19 PM
Author:  katinga Number:  4 of 8

OK. I looked at the prospectus. It seems that the ETF rebalances once a year in November (nice), buys futures out to a year ahead I think based upon a formula figuring the most advantageous spread between the current commodity price and the future's price (also nice).

However, these are futures. The prices of futures can be quite volatile. Indeed, the prospectus lists this as a risk, even the potential to lose one's investment. So why am I not seeing greater volatility? Is DBC effectively leveraging commodities prices?

I'm thinking of adding DBC to my portfolio, to take a chunk of the commodities section, replacing stock-based natural resources ETFs that I own. But I guess, I don't understand enough about it, yet.
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