IShares Commodity-Indexed ETF To Cap Shares At 55.9 Million
By Ian Salisbury, Of Dow Jones Newswires
NEW YORK -(Dow Jones)- In a move signaling even broad-based commodity ETFs
will be affected by expected new limits on speculators, Barclays PLC (BCS)
indicated it may stop issuing new shares for one of the most popular commodity
investments.
In a regulatory filing dated Friday, Barclays said it would cease issuing new
shares of the $1.6 billioniShares S&P GSCI Commodity Indexed Trust (GSG) when
the total outstanding reached 55.9 million. It currently stands at about 52.5
million.
Other funds that have suspended issuing new shares, most notably U.S. Natural
Gas ETF (UNG), have tended to trade at prices substantially exceeding the value
of their holdings. Barclays appears to be the first company to say it would
limit shares for a fund designed to track a broad basket of commodities,
although Deutsche Bank AG (DB) said new restrictions could make it harder for
one of its broad commodity ETFs to track its benchmark.
iShares S&P GSCI Commodity Indexed Trust recently changed hands at $31.25, up
62 cents, or 2%. The price amounted to a premium of about 1% on the value of its
holdings.
-Ian Salisbury; Dow Jones Newswires; 212-416-2241; ian.salisbury@dowjones.com
(END) Dow Jones Newswires
08-24-091051ET
Copyright (c) 2009 Dow Jones & Company, Inc.
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