USO, UNG, and now... a new multi commodity ETF

The same company that brought us USO, UNL, UGA and UNG ,  U.S. Commodity Funds, intends to launch a diversified commodities ETF. The paperwork was field with the SEC in late 2009. The ETF will be based on an index created by SummerHaven Index Management.

Let's hope it will not suffer for the terrible contango effects and that it does not roll over contracts every month like UNG!

The SummerHaven Dynamic Commodity Index (SDCI) is an actively managed commodities futures index with positions in energy, precious metals, industrial metals, and agricultural commodities (livestock, grains and softs).

Each month, 14 commodities are chosen from a pool of 27, based on fundamental indicators, weighting the selected commodities equally in the portfolio. The index is rebalanced monthly, making the SDCI the first "long-only active benchmark for commodity investors."