Like the DBLCI, the DBLCI-OY is available in USD, EUR, GBP and JPY on a hedged and un-hedge basis.
The DBLCI-OY is rebalanced on the fifth index business day of November when each commodity is adjusted to its base weight.
The rationale of the Optimum Yield technology was to address the dynamic nature of commodity forward curves.
The DBLCI-OY indices are designed to select the futures contacts that either maximise the positive roll yield in backwardation term structures or minimise the negative roll yield in contangoed markets from the list of tradeable futures that expire in the next 13 months.
Historically the engine room of performance within a commodity index has derived from the positive roll return generated in the energy sector due to the tendency for forward curves in this part of the commodity complex to be downward sloping or backward dated.