ETRACS Bloomberg Commodity Index Total Return ETN Series B due October 31, 2039
What is DJCB?
The ETRACS Bloomberg Commodity Total Return Index Exchange Traded Note Series B is designed to track the performance of the Bloomberg Commodity Index TR (the Index ), less investor fees. The Index is designed to provide diversified commodity exposure with weightings based on each underlying commodity s liquidity and economic significance. The Index measures the collateralized returns from a basket of 23 commodity futures contracts representing the energy, precious metals, industrial metals, grains, softs and livestock sectors. In addition, the Index is rebalanced once a year to ensure that no commodity sector may constitute more than 33% of the Index as of the date of such rebalancing.
ETFs related toDJCB
ETFs correlated to DJCB include DJP, BCI, BCD
What is ETF correlation?
Correlation is a measure of the strength of the relationship between two ETFs. It quantifies the degree to which prices of the two ETFs typically move together.
Here, correlation is measured over the past year with the Pearson correlation coefficient (Pearon’s r), which ranges from -1 to 1.
Using ETF correlations in portfolio and strategy construction
ETF correlations can help you create investing strategies and portfolios. Use them to:
- •Build a diversified portfolio from uncorrelated or inversely correlated ETFs with the aim of minimizing portfolio risk.
- •Compare correlated or related ETFs to find one with a lower expense ratio or higher trading volume.
- •Create an investing strategy that hedges an ETF with an uncorrelated or inversely correlated ETF.
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We show information based on calculations performed by Composer using data from our provider. Information provided here is based on calculations performed by Composer using data sourced from Xignite, an unaffiliated third party. Composer believes this information is reliable, but has not verified the data and there is no guarantee that the calculations are accurate.