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Author: katinga Big funky green star, 20000 posts Old School Fool Ticker Guide Answer Team Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 8  
Subject: Risks? Date: 12/21/2007 9:19 PM
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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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