PowerShares DB Commodity Index Tracking Fund (DBC)

The PowerShares DB Commodity Index Tracking Fund (DBC) started trading in February 2006. It tracks the Optimum Yield Excess Return version of the Deutsche Bank Liquid Commodity Index, minus expenses and fees.

The Optimum Yield Excess Return Index consists of futures contracts on aluminum, corn, crude oil, gold, heating oil, and wheat. These are the six most heavily traded commodities. The index is rebalanced annually in November.

The fund has an expense ratio of 0.75%. Additional expenses include an estimated 0.08% futures brokerage fee. Because the fund trades futures contracts, there are important tax considerations that potential investors should discuss with a tax professional.

As of August 2008, the PowerShares DB Commodity Index Tracking Fund had the following commodity breakdown:

Aluminum 10.49%
Corn 11.71%
Gold 7.74%
Heating Oil 22.21%
Crude Oil 36.7%
Wheat 11.16%

The fund pays out an annual distribution.