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Products December 21, 2011
Dow Jones and UBS Securities Launch Index
Dow Jones Indexes and UBS Securities LLC launched the Dow Jones-UBS Commodity Index 2-4-6 Forward Blend.
Reported by Tara Cantore
The new index is a gauge that measures diversified exposure to longer-dated commodity futures contracts spread across the commodity price curve.
An enhanced version of the Dow Jones-UBS Commodity Index, the Dow Jones-UBS Commodity Index 2-4-6 Forward Blend reflects the return of underlying commodity futures price movements. Also introduced was a total return version of the index, which reflects the return on fully collateralized futures positions.
The index is constructed as an equally weighted basket of the two-month, four-month and six-month forward versions of the Dow Jones-UBS Commodity Index, with the notional exposure to the three component indexes rebalanced at the end of every month so that each index represents one-third of the basket. The index is quoted in USD.
“This new gauge is a welcome addition to the Dow Jones-UBS Commodity Index family,” said Michael A. Petronella, president, Dow Jones Indexes. “The Dow Jones-UBS Commodity Index 2-4-6 Forward Blend tracks diversified exposure across a range of longer-dated commodity contracts—a measure growing in importance for this asset class.”