DBE reflects the performance of energy commodity futures. The funds index is designed to reduce the effects of contango by selecting futures contracts that, by its rule, have the highest implied roll yield for each commodity. The fund weights commodities by liquidity rather than production and strategically selects futures contracts in an attempt to maximize roll yield. The index underweights WTI and Brent crude relative to our benchmark, while providing extra exposure to Heating Oil, RBOB Gasoline and Natural Gas. Gas oil is completely excluded. Structured as a commodity pool, investors should expect a K-1 at tax time. The fund and the index are rebalanced and reconstituted annually in November.
