5 min readBy Ron Koren ETF Insider
How does the DFUS ETF work?
The DFUS ETF is a specialized investment fund that focuses on a specific sector. This exchange-traded fund offers investors exposure to a range of companies in this sector.
The Berkshire Hathaway ETF (BRKY) offers a unique investment proposition, as it is tied to the conglomerate led by the legendary investor Warren Buffett. Berkshire Hathaway is known for its diverse portfolio of wholly-owned businesses and stock investments, spanning various sectors from insurance to consumer goods. The BRKY ETF provides investors with an opportunity to tap into the strategic investment acumen of Buffett and his team, making it an attractive option for those looking to align their portfolios with the principles of value investing.
While the BRKY ETF primarily emphasizes capital growth, its dividend distribution is tied to the performance of the underlying companies in the index it tracks. Dividends from this ETF are generally distributed on a quarterly basis, mirroring the dividend policies of the individual companies within the index. Investors considering BRKY may benefit from potential capital appreciation, coupled with periodic dividend returns.
Tracking the Breakfast Commodity Index is the primary objective of the BRKY ETF. This exchange-traded fund is designed to mirror the performance of tradeable commodities classified as breakfast foods, including corn, coffee, lean hogs, sugar, Chicago wheat, and orange juice. BRKY accomplishes this by investing in monthly futures contracts for these commodities. The Index is globally production-weighted, taking into account the relative significance of each commodity to the world economy, with the exception of orange juice, which is capped at 5%. BRKY employs a rolling strategy to target the most favorable roll yield, ensuring it aligns with the current shape of the forward curves of breakfast commodity futures contract prices. The ETF may also adjust its futures contracts to minimize the effects of negative roll yields when the futures curve is in contango or capitalize on positive roll yields during backwardation. As of the Index's inception, its constituents were corn (41.22%), coffee (8.06%), lean hogs (13.20%), sugar (11.68%), Chicago wheat (24.52%), and orange juice (1.32%). The Index is rebalanced annually. While the Fund generally does not directly invest in breakfast commodity futures contracts, it expects to gain exposure through a subsidiary, which may invest up to 25% of the Fund's total assets in commodity-linked derivatives and commodity futures. The Subsidiary operates under Cayman Islands law, is wholly owned and controlled by the Fund, and shares the same investment objective and policies. Please note that the Fund follows a passive indexing approach, attempting to replicate the Index but may hold a representative sample of instruments in the Index at times. The Fund is non-diversified, and its investment objective is not considered a fundamental policy. The ETF's portfolio may be subject to change as it aligns with the Index and market conditions.
The correlation aspect of the Breakfast Commodities Index ETF (BRKY) is primarily related to its performance relative to the commodities it tracks, which include corn, coffee, lean hogs, sugar, Chicago wheat, and orange juice. Since BRKY invests in monthly futures contracts for these breakfast commodities, its correlation with the prices and market dynamics of these commodities is significant. It tends to perform in accordance with the overall trends and price movements of these commodities.
The BRKY ETF (Breakfast Commodities ETF) focuses on the commodities associated with breakfast foods, such as corn, coffee, lean hogs, sugar, Chicago wheat, and orange juice. This ETF invests in monthly futures contracts for these commodities and aims to track the performance of these tradeable assets. The ETF's strategy is world production-weighted, giving prominence to each commodity's significance in the global economy, with the exception of orange juice, which is capped at 5%. It employs a rolling strategy to optimize returns by selecting futures contracts with the largest roll yield, considering the shape of the forward curves in the commodities' futures contract prices. The ETF may adjust its exposure based on the prevailing market conditions, striving to minimize the impact of negative roll yields during contango or capitalize on positive roll yields during backwardation in the futures curve. The BRKY ETF is non-diversified and may concentrate its investments in a limited number of issuers, and its investment objective is not a fundamental policy, subject to change by the Fund's Board of Trustees.
The Prime Real Estate Technology Index, which the BRKY ETF seeks to replicate, offers exposure to companies globally engaged in Real Estate Technology Business. This includes businesses providing internet-based services related to property listing, real estate brokerage, property insurance, property loans, and home improvement services, as well as those offering software, data, or technology services to real estate companies. BRKY does not actively manage its holdings to beat the index but rather aims to mirror the performance of these Real Estate Technology Companies. For a deeper understanding of this ETF's exposure and potential correlations, you can utilize our ETF Insider web app, which provides comprehensive data and visualization tools for all US ETFs.
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5 min readThe DFUS ETF is a specialized investment fund that focuses on a specific sector. This exchange-traded fund offers investors exposure to a range of companies in this sector.
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