BlackRock has rolled out a new iShares Commodities Select Strategy ETF (COMT) to provide long-only, broad exposure to commodities under a 40 Act regulated structure.

Go deeper with GlobalData

Premium Insights

The gold standard of business intelligence.

Find out more

The new ETF provides access to a diversified mix of commodities via futures and commodity-related companies.

Using a uses a roll methodology, the ETF seeks to minimize the negative return impact of ‘contango’, which explains a term structure of the futures curve where the future price is above the expected future spot price.

Additionally, COMT also provides direct access to commodity prices via futures contracts, including agriculture, livestock, energy, industrial metals, and precious metals.

Also, the fund, which has a simplified tax treatment, invests a portion of its assets in stocks of commodity producers to maintain diversified commodities exposure.

How well do you really know your competitors?

Access the most comprehensive Company Profiles on the market, powered by GlobalData. Save hours of research. Gain competitive edge.

Company Profile – free sample

Thank you!

Your download email will arrive shortly

Not ready to buy yet? Download a free sample

We are confident about the unique quality of our Company Profiles. However, we want you to make the most beneficial decision for your business, so we offer a free sample that you can download by submitting the below form

By GlobalData
Visit our Privacy Policy for more information about our services, how we may use, process and share your personal data, including information of your rights in respect of your personal data and how you can unsubscribe from future marketing communications. Our services are intended for corporate subscribers and you warrant that the email address submitted is your corporate email address.

The company said that COMT will report taxable gains and distributions on a Form 1099, the standard tax reporting form for mutual funds and ETFs.

Patrick Dunne, head of iShares global markets and investments at BlackRock, said: "COMT is intended to be an all-in-one commodity solution by providing comprehensive commodity exposure in a smarter, more efficient way through both futures and equities; removing a tax barrier that may have kept investors away from commodities and utilizing a roll methodology that seeks to improve returns."

Daniel Gamba, head of iShares Americas institutional business at BlackRock, said: "They want diversified commodities exposure through an ETF, but they don’t want the cumbersome K-1 tax reporting that comes with existing approaches. So we created long-only, diversified commodities ETF without the Schedule K-1, the first ETF of its kind."