It appears that the dream of letting retail investors easily speculate directly on commodities from the comfort of their E-Trade account is disappearing. As FT Alphaville notes, what started with UNG has spread to other commodity-based ETFs — they fear that new regulations will prevent them from operating smoothly, and they’re cancelling plans to issue mroe shares.
Almost every day another fund is announcing the suspension of new share issues – at the risk of destabilising its tracking record, we might add — on fears the CFTC will soon act to restrict fund positions across commodity futures.
Barclays Global Investors’s iShares S&P GSCI ETF, which tracks the S&P GSCI Total Return Index with investments in metals, energy, agriculture and livestock futures, was the latest to join the list of affected funds on Monday this week.
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