I read about two new innovative ETFs that track new asset classes on the ETF Investor website: Deutsche Bank Commodity Index ETF (DBC) and the Rydex Euro Currency Trust (FXE).

The DBC commodity ETF is intended to reflect the performance of commodities like crude oil (35%), heating oil (20%), aluminium (12.5%), gold (10%), corn (11.25%) and wheat (11.25%) and will be based on derivatives (much like the earlier version of the iUnits XIN and XSP). (An iShares ETF based on the Goldman Sachs Commodity Index is also in the works).

The FXE, which began trading on the NYSE last week, tracks the price of euros in dollars. The trust holds cash in euros and investors earn interest (less expenses) on the holdings.

I think DBC is very interesting as commodities have a low/negative correlation with plain old stocks and bonds. The FXE might be useful for someone who needs to hedge their euro exposure, but is of little value in my portfolio.