STREAM Exchange Traded Trust Files For STREAM S&P Dynamic Roll Global Commodities Fund
STREAM Exchange Traded Trust has filed paperwork with the SEC for a “STREAM S&P Dynamic Roll Global Commodities Fund.” The Fund will seek to track changes, whether positive or negative, in the level of the S&P GSCI Dynamic Roll Excess Return Index. The Index aims to reflect the return of an investment in a world production-weighted portfolio comprising the principal physical commodities that are the subject of active, liquid futures markets.
They plan to trade this fund on the NYSE under the symbol: (NYSEARCA:BNPC).
The Fund will seek to track changes, whether positive or negative, in the level of the S&P GSCI® Dynamic Roll Excess Return Index, which we refer to as the Index, over time. The Shares are designed for investors who want a convenient way to gain an exposure to a diversified selection of commodities and an index strategy that seeks to serve as a benchmark for commodity market returns and to reflect general levels of price movements and inflation in the world economy.
Considerations relating to an investment in the Shares include:
• Roll Optimization. The Index is an excess return commodity index comprised of commodity futures contracts that are replaced periodically. The process of periodically replacing a futures contract prior to its expiration is known as “rolling” a contract or position. The Fund utilizes a more flexible monthly futures contract rolling strategy, to determine the new futures contract months, than the liquidity focused S&P GSCI® Index. This is designed to maximize yield from rolling long futures contracts in backwardated markets and minimize roll loss from rolling long futures positions in contangoed markets.
• Ease and Flexibility of Investment. The Shares will trade on NYSE Arca and provide investors with indirect exposure to commodity futures. The Shares may be bought and sold throughout the business day at real-time market prices on NYSE Arca like other exchange-listed securities. Investors will be able to purchase and sell Shares through traditional brokerage accounts.
• Diversification. The Shares may help to diversify a portfolio because historically (based on the Index’s hypothetical closing levels from January 1995 – January 2011) the Index has tended to exhibit low to negative correlation with equities, conventional bonds and alternative investments.
• More Direct Commodity Access. The Shares provide a more direct exposure to commodities than mutual funds that invest in commodity-linked notes or non-exchange traded commodity instruments, which also have implicit imbedded costs and credit risk, potentially adversely impacting the net asset value of the mutual fund.
• Margin. Shares will be eligible for margin accounts.
Investing in the Shares does not insulate Shareholders from certain risks, including price volatility.
The Fund seeks to achieve its investment objective by investing in exchange-traded futures, or Designated Contracts, on the commodities (as set forth in the Table 1 on page 54) comprising the Index, or the Index Commodities, with a view to tracking the Index over time. More specifically, the Fund seeks to achieve its investment objective by investing in Index Commodity Interests (as defined below) such that daily changes in the Fund’s NAV per Share will be expected to track the changes in the level of the Index.
The Designated Contracts currently included in the Index, the Futures Exchanges on which they are traded, their trading symbols, trading times and their percentage dollar weights are as follows:
March 30, 20123
|KBT||Kansas City Wheat||KW||10:30-14:15||0.79%|
|ICE-UK||Brent Crude Oil||LCO||20:00-18:00||19.23%|
“CBT” means the Chicago Board of Trade.
“KBT” means the Kansas City Board of Trade.
“ICE-US” means ICE Futures U.S.
“CME” means the Chicago Mercantile Exchange.
“NYM” means the New York Mercantile Exchange, Inc.
“ICE-UK” means ICE Futures Europe.
“LME” means the London Metal Exchange.
For the complete filing click: HERE