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<p>[QUOTE=&quot;midas1, post: 1120428, member: 21309&quot;]On a rotating basis it may or may not contain PM.&nbsp; So far, i like it.</p><p><br /></p><p><a href="http://seekingalpha.com/article/220677-usci-the-commodity-etf-evolves" target="_blank" class="externalLink ProxyLink" data-proxy-href="http://seekingalpha.com/article/220677-usci-the-commodity-etf-evolves" rel="nofollow">http://seekingalpha.com/article/220677-usci-the-commodity-etf-evolves</a></p><p><br /></p><p>&quot;. . . The prospectus (pdf) elaborates on the fact that no human bias is introduced into the process. Even its name clearly identifies this product as an “index” fund. . . &quot;</p><p><br /></p><p>&quot;. . . Now we begin Phase 5, which is marked by ETF sponsors employing dynamic indexing techniques to combat the negative effects of contango, capture the positive effects of backwardation, and maximize total return. USCI is likely to be just the first of many such Phase 5 products as the evolution of commodity investing continues. . . &quot;</p><p><br /></p><p>&quot;. . . Each month 14 of the 27 eligible commodities are selected to be index components, with a minimum of one commodity from each sector (energy, grains, industrial metals, livestock, precious metals, and softs) to ensure diversification. The monthly commodity selection is a two-step process:</p><p><br /></p><p>The seven commodities with the highest percentage price difference between the closest-to-expiration futures contract and the next closest-to-expiration futures are selected (the seven displaying the most backwardation).</p><p>From the remaining 20 eligible commodities, the seven with the highest one-year percentage price change are selected (the seven displaying the most one-year momentum). If all six sectors are not represented by at least one commodity, then a substitution process is employed until the constraint is satisfied.. . &quot;</p><p><br /></p><p>&quot; . . . For the month of August 2010, the fund’s sector allocation and component futures contracts are:</p><p><br /></p><p>Energy (14.3%): Crude Oil (WTI) SEP11, Natural Gas OCT10</p><p>Grains (14.3%): Soybean NOV10, Soybean Meal OCT10</p><p>Industrial Metals (21.4%): Copper OCT10, Nickel MAR11, Tin DEC10</p><p>Livestock (7.1%): Lean Hogs DEC10</p><p>Precious Metals (21.4%): Gold OCT10, Platinum OCT10, Silver DEC10</p><p>Softs (21.4%): Cotton DEC10, Coffee DEC10, Sugar #11 OCT10 . . . &quot;</p><p><br /></p><p>&quot;. . . USCI has an expense ratio of 0.95%. Additional information on the fund can be found in the links above and on the USCI summary page, USCI details page, and USCI fact sheet (pdf). . . &quot;[/QUOTE]</p><p><br /></p>

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