DBA etf a safe place to park $$ ?

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neilk's picture
neilk
Status: Member (Offline)
Joined: Dec 5 2008
Posts: 10
DBA etf a safe place to park $$ ?

I have some USD stuck in my brokerage account (long story). I'm wondering what will be a safer place than cash from August 1st. For about six months I've been wondering if the DBA (Agriculture) exchange traded fund might be a reliable store of value in the near term.

Here is what the prospectus says about the fund

"The PowerShares DB Agriculture Fund (Symbol: DBA) (the “Fund”) is based on the DBIQ Diversified Agriculture Index Excess Return™ (the “Index” or "DB Agriculture Index") and is managed by DB Commodity Services LLC (the “Managing Owner”). The Index is a rules-based index composed of futures contracts on some of the most liquid and widely traded agricultural commodities. The Index is intended to reflect the performance of the agricultural sector."

What does the community think? I don't want to put my cash in this fund if it turns out that they are actually trading credit default swaps, for which no living counter party can be found if we are headed into a black hole. Perhaps someone here already knows that this fund is bogus?

Also in that account I have quite a few puts on ZSL for January 2011. These acticipate a rise in silver.

My other money is in Bullionvault where I recently sold silver, hoping for a dip to buy into. At least my ZSL puts are a hedge against my missing that.

 

 

 

 

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