DBB Base Metal ETF

[R1234]

I want to trade this ETF long and short.
Does anybody have experience trading it?

How wide is the bid/ask? And is it relatively easy to short?

I have seen long and inverse ETFs on base metals but those are still extremely illiquid - so for now DBB is my only way to obtain the exposure (other than trading the LME forwards, which I used to do and was a pain in the a$$).

 

[WinstonTJ]

basic google research will show you that the average volume is 545k shares traded, there are only 2.4mm shares outstanding and (on bloomberg, not on google finance) spreads are pretty wide - anywhere from a dime to a dollar)

13F holdings as of 6/30 Citigroup was the largest holder - 1.8mm shares out of 2.44M outstanding. After that it looks like mostly retail holders. Short interest ratio 0.58, as of 8/30 there are 371,300 shares short but since Citi owns 1.8M you may have a hard time getting a borrow.

If you are looking to hold you could probably use a limit order and get in/out but if you are looking to trade it or would need to flip them in a hurry you probably can't get out without losing your shirt.

Just my 0.02... You can find out most of this on Google Finance. How much are you looking to buy/invest and for how long?

 

[drcha]

I have had trouble shorting it before. I only tried once, though, so I don't have a lot of experience.

I am long DBB right now.