DBLCI Optimum Yield Balanced Index
The DBLCI-OY Balanced has the same underlying 14 commodities as the DBLCI-OY Broad, but, the energy sector weight is reduced from 55% of the broad index to 35%. The DBLCI-OY Balanced is designed to be UCITS III compliant, that is the weight of no single commodity or strongly correlated securities exceed 35%. The DBLCI-OY Balanced is listed as an ETF on the Deutsche Börse.
In terms of sector weights, the DBLCI-OY Balanced is broadly similar to the S&P GSCI Light Energy Index and the Dow Jones-AIG commodity index although the DBLCI-OY Broad has no exposure to the livestock sector, but, instead has a higher allocation to precious metals.
Characteristics of the DBLCI-OY Balanced Index
- Consists of 14 commodities drawn from the energy, precious metals, industrial metals and agriculture sectors.
- Index rolling mechanism is based on DB’s Optimum Yield technology.
- UCITS III compliant.
- Maximum sector allocation is limited to 35%.
The DBLCI Family of Commodity Indices
- Deutsche Bank Liquid Commodity Index (DBLCI)
- DBLCI Optimum Yield (OY) Index
- DBLCI Mean Reversion (MR) Index
- DBLCI Optimum Yield (OY) Broad Index