The funds will offer investors access to commodities through the Optimum Yield versions of the Deutsche Bank Liquid Commodity Index sub-indexes, according to a press release.
Optimum Yield seeks to minimize the effects of negative roll yield when markets are in contango (that is, when the next-to-expire contract is trading at a lower price than contracts expiring in later months) and maximize the effects of positive roll yield when markets are backwardated (that is, when the next-to-expire contract is trading at a higher price than contracts expiring in later months).
The funds will enter into long exchange-traded commodity futures positions and will also generate interest on cash and United States treasury securities held as collateral for the futures contracts they hold.
The funds and their tickers are:
- PowerShares DB Agriculture Fund (AMEX: DBA)
- PowerShares DB Base Metals Fund (AMEX: DBB)
- PowerShares DB Energy Fund (AMEX: DBE)
- PowerShares DB Oil Fund (AMEX: DBO)
- PowerShares DB Precious Metals Fund (AMEX: DBP)
- PowerShares DB Silver Fund (AMEX: DBS)
- PowerShares DB Gold Fund (AMEX: DGL)
More information on the funds is available at www.dbfunds.db.com