Just as commodities have enjoyed a major bull run, a wave of commodity-linked investments is looking to make its way into investors’ hearts.
Barclays Global Investors recently expanded its product menu by introducing the iShares GSCI Commodity-Indexed Trust (GSG) to the New York Stock Exchange (NYSE). The new portfolio, which resembles an ETF but isn’t operated or registered in quite the same way, carries an expense ratio of 0.75 percent.
GSG is based on the GSCI Total Return Index and as such, contains futures contracts for 24 commodities from all commodity sectors, including six energy products, five industrial metals, eight agricultural products, three livestock products and the two precious metals. With a 75 percent weighting, energy accounts for the bulk of the index’s overall value.