A column in today’s Financial Post (also available here) mentioned the RBC Principal Protected Commodity Linked Note, through which Canadian small investors can get exposure to a basket of commodities. The note takes a long-only, equally weighted position in the following commodities: oil, natural gas, lead, copper, aluminium, nickel and platinum. It provides a 125% exposure to the commodity basket and 100% principal protection if held to maturity in 5 years. The note is inexpensive as the only fees paid are the 3% commission to selling agents.

Since, the minimum investment is only $1000, the note provides a great way for small investors to invest in commodities, which are poorly correlated with stocks and bonds. It’s too bad that the Post saw it fit to run a story today on an investment product that closed on July 26, 2005. Well, I am hoping that RBC will soon issue another series of these notes.