Fund Summary and Key Points
The VanEck CM Commodity Index Fund (the "Fund") seeks to track, before fees and expenses, the UBS Bloomberg Constant Maturity Commodity Index (the “CMCI”).
- CMCI is a next-generation commodity index diversified across maturities, minimizing its exposure to the front end of the futures curves
- By spreading its exposure across multiple maturities and maintaining a constant maturity per commodity, CMCI seeks to mitigate the impacts of negative roll yield in contango environments
- Diversified across five commodity sectors and 29 commodity components; energy allocation typically around 35%
- In contrast with many “enhanced” commodity funds, offers “pure” commodity exposure by investing in commodity-linked derivative instruments and more conservative fixed income securities, such as U.S. Treasury Bills