Value Microcaps Food, Agriculture and Soft Commodities

[KastelCo]

Hi Matt,

I was looking for a way to invest in selected futures minus the futures account so I went with COW...

From iPath
Each index calculates returns from three distinct sources (hence the classification, total return):

The interest earned from the cash collateral committed
to trading in the futures (generally Treasury bills)
The change in futures contract price
The return from rolling the futures into further dated
contracts as they approach expiry


I (not an expert) think that is generally how someone with a futures account would be deriving income although I think not all brokers pay you interest on the collateral (cash you have deposited).. So yes interest rates can effect your return... or mad cow disease :O)

Again I'm no expert but that's my take..

The Black Swan