All-In-One Commodity Solution That Utilizes a Dynamic Roll Methodology
Nasdaq today announced that BlackRock, Inc. will list a new exchange-traded fund, iShares Commodities Select Strategy ETF (Symbol: COMT), on The Nasdaq Stock Market. COMT will begin trading on Nasdaq today, October 16th, 2014.
"We believe commodities play an important role in investor's portfolios, but investing in them can be a challenge," said Patrick Dunne, Head of iShares Global Markets and Investments at BlackRock. "The iShares Commodities Select Strategy ETF provides investors with comprehensive commodity exposure in a simple, efficient way through futures and equities and removes a tax barrier that may have kept investors away from commodities."
COMT is innovatively structured to provide cost-effective, simple access to a diversified mix of commodities through futures and commodity-related companies. The fund is intended to be an all-in-one commodity solution by providing comprehensive commodity exposure in a smarter, more efficient way through both futures and equities; removing a tax barrier that may have kept investors away from commodities and utilizing a roll methodology that seeks to improve returns. The fund manager uses a roll methodology designed to minimize the negative return impact of 'contango', which describes a term structure of the futures curve where the future price is above the expected future spot price. Additionally, the ETF structure of COMT alleviates the need for investors to file a K-1 at tax time.
"We are thrilled to embark on a closer partnership with BlackRock and welcome their unique exchange-traded product to the Nasdaq family of listed companies and ETPs," said Walt Smith, Vice President, Head of U.S. Equities at Nasdaq. "As an operator of leading electronic trading venues in multiple asset classes including cash equities and fixed income, we continue to facilitate various investment opportunities in these products."
Nasdaq operates an efficient platform for successfully introducing a product suite into one of the single largest pools of liquidity, including market participants which represent a full spectrum of investors. ETF issuers benefit from an end-to-end solution that provides ongoing product support including index licensing, listings opportunities, data offerings and trading services. As the home to some of the world's most innovative ventures, Nasdaq generates opportunities for issuers to access new markets and deliver new concepts that change the way the industry develops, manages and applies ETFs.