Jared Cummans: Jim Rogers has long been one of the most influential names in the commodity world, as his insights and strategies have been well documented. His name is already attached to a number of popular commodity funds, and you can now add 5 more to that tally. Jim Rogers has teamed up with RBS to launch a slew of optimized commodity ETNs, each with a unique focus on the broad space [for more commodity ETF news and analysis subscribe to our free newsletter].
The new funds will track “enhanced” indexes that look to slice and dice the commodity world in a different way than your standard fund. For starters, the funds have a selective roll process that allows them to choose futures contracts of different maturities as opposed to defaulting to a front month roll. This will help to avoid some of impacts of contango that so often plague first generation ETPs. Also note that as ETNs, none of these products will incur tracking error, but will instead feature the credit risk of the counterparty Merrill Lynch.
The enhanced indexes have, for the most part, outperformed their standard counterparts in recent years, giving an added attraction to these new products. The new ETFs are listed below:
- Rogers Enhanced Commodity ETN (NYSEARCA:RGRC):This fund is designed as a broad overview of the commodity world, as it represents 36 different futures contracts.
- Rogers Enhanced Agriculture ETN (NYSEARCA:RGRA):This ETN will compete with RJA as it offers exposure to agricultural commodities, a sector that Rogers is particularly fond of [see also Jim Rogers: This Sector Will Boom in the Coming Years].
- Rogers Enhanced Industrial Metals ETN (NYSEARCA:RGRI): Industrial metals have been struggling as of late, but RGRI may offer a compelling buy once they find a bottom.
- Rogers Enhanced Energy ETN (NYSEARCA:RGRE): This ETN hones in on energy futures contracts.
- Rogers Enhanced Precious Metals ETN (NYSEARCA:RGRP): RGRP will cash in on the surging precious metals trend that has engulfed much of the commodity world.
The funds were slated to hit markets on October 30th, but hurricane Sandy had other plans. Look for these products to make their debut anytime in the next few trading sessions, and with the Rogers name attached to them, they have a good chance of making a splash on opening day.
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