DBB: Industrial metals demand on the rise

The PowerShares DB Base Metals ETF (DBB) is the play for the continuing increase in demand for industrial base metals, particularly due to growth in the BRIC countries. According to Reuters, copper inventories in the LME have dropped 30% since January, with aluminum and zinc following suit. Although copper, aluminum, and zinc are up YTD 24%, 21%, and 4% respectively, the demand, coupled with fears of supply disruption, bode well for continued higher prices. This ETF will benefit through its use of futures contracts in the metals, with the breakdown of the fund as follows: 33% - Copper 33% - Aluminum 33% - Zinc