Jefferies rolls out two more commodities ETFs

Just weeks after launching its first commodities exchange-traded fund, a unit of Jefferies & Co. Inc. today launched two similar ETFs: one focused on agriculture and another on industrial metals.
OCT 28, 2009
Just weeks after launching its first commodities exchange-traded fund, a unit of Jefferies & Co. Inc. today launched two similar ETFs: one focused on agriculture and another on industrial metals. Like its first commodities ETF, launched Oct. 5, the Jefferies TR/J CRB Global Agriculture Equity Index Fund (CRBA) and the Jefferies TR/J CRB Global Industrial Metals Equity Index Fund (CRBI), from Jefferies Asset Management LLC, are somehwat unusual. Both invest in the stocks of companies that produce and distribute commodities and commodities-related products, whereas most other commodities ETFs invest in commodities futures. But commodities ETFs that are based on futures have run into trouble because the Commodity Futures Trading Commission has concerns over excessive speculation in futures markets, which was seen in the run-up in oil prices last year and in 2007. The CFTC has expressed concern that exchange-traded products may have helped facilitate such speculation. “Commodity investing need not be one dimensional,” Adam De Chiara, co-president of Jefferies Asset Management, said in a statement. “At times, commodity equities may outperform futures and vice versa. At times, certain commodity sectors may present more favorable investment opportunities.” The two new ETFs have an expense ratio of 0.65%.

Latest News

Judge OKs more than $90 million in settlement money for GWG investors
Judge OKs more than $90 million in settlement money for GWG investors

Mayer Brown, GWG's law firm, agreed to pay $30 million to resolve conflict of interest claims.

Fintech bytes: Orion and eMoney add new planning, investment tools for RIAs
Fintech bytes: Orion and eMoney add new planning, investment tools for RIAs

Orion adds new model portfolios and SMAs under expanded JPMorgan tie-up, while eMoney boosts its planning software capabilities.

Retirement uncertainty cuts across generations: Transamerica
Retirement uncertainty cuts across generations: Transamerica

National survey of workers exposes widespread retirement planning challenges for Gen Z, Millennials, Gen X, and Boomers.

Does a merger or acquisition make sense for your firm? Why now is the perfect time to secure your firm’s future
Does a merger or acquisition make sense for your firm? Why now is the perfect time to secure your firm’s future

While the choice for advisors to "die at their desks" might been wise once upon a time, higher acquisition multiples and innovations in deal structures have created more immediate M&A opportunities.

Raymond James continues recruitment run with UBS, Morgan Stanley teams
Raymond James continues recruitment run with UBS, Morgan Stanley teams

A father-son pair has joined the firm's independent arm in Utah, while a quartet of planning advisors strengthen its employee channel in Louisiana.

SPONSORED RILAs bring stability, growth during volatile markets

Barely a decade old, registered index-linked annuities have quickly surged in popularity, thanks to their unique blend of protection and growth potential—an appealing option for investors looking to chart a steadier course through today's choppy market waters, says Myles Lambert, Brighthouse Financial.

SPONSORED Beyond the dashboard: Making wealth tech human

How intelliflo aims to solve advisors' top tech headaches—without sacrificing the personal touch clients crave