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Thread: Does DBA have a time decay?

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  1. #4
    Join Date
    Sep 2007
    Location
    northeastern illinois
    Posts
    1,735

    Default Re: Does DBA have a time decay?

    As Chris notes you will get tracking error due to futures roll, if they are in contango.

    I just bought DBC yesterday. I intend on writing a OTM call to offset the contango effect. By doing this if the price spikes, I will not partcipate. If the price increase is slow and unrelenting, I can roll by calls up and forward.

    I just pulled the fact sheet here.
    http://www.invescopowershares.com/pr...spx?ticker=dba

    Seems like the index the DBA is compared to, has been crumby too, which support vt's statement that crop yields are doing really good.
    3 yr return of index is 1.89, 1 yr is -10.58
    Last edited by charliebrown; 08-09-13 at 05:14 PM.

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