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Non-Tech : Farming -- Ignore unavailable to you. Want to Upgrade?


To: farmerboy who wrote (482)3/5/2008 7:48:45 AM
From: MoneyPenny  Read Replies (3) | Respond to of 4454
 
DBA Is Full-Up

I've been invested in DBA since January 2007 and am always looking for information regarding the ETF. This caught my eye this morning and I am curious to hear any thoughts from this group:

DBA Is Full-Up
Written by Matthew Hougan
Tuesday, 04 March 2008 18:00

Want to know how big the commodity boom is? The PowerShares DB Agriculture ETF—or DBA—is basically full.

More accurately, the fund-which invests in commodity futures contracts-has reached its position limits in some of its commodities.

The commodity exchanges and the Commodity Futures Trading Commission set maximum amounts that certain investors can hold in individual commodities. DBA's assets have soared recently, adding nearly $1 billion in assets in February alone (to hit $2.8 billion), and that asset growth has pushed the fund against CFTC position limits. As a result, as PowerShares DB said in this filing with the SEC, DBA has started trying to replicate the returns of the index by investing in futures that are similar ... but not identical ... to those in the index itself.

sec.gov

indexuniverse.com

I have a similar mutual fund (PCRIX) that trades commodity futures across all commodities with a tips bond underpinning. I am up over 120% with it over 4 years. I am concerned with the rapid trading that goes on with DBA however and how that will affect the etf.

Money Penny