Hmmm, interesting about that fee... Another problem with the oil shares and arbing them was that they claimed that there could be a speculative premium/discount in them. They didn't HAVE to move with oil. If they got way out of wack, they could just claim it was due to future anticipation of oil movements.
The problem with the CME futures is that volume is virtually non-existant (like somebody said above, you can't take delivery, you can't arb these to the "underlying") Now I hope these ETFs - transferring funds from one trust to another to eliminate discounts/premiums - could change that but I have my doubts.
No the price for their shares will NOT move with the underlying at all. All they do is swapping the assets back and fourth making the NAV move with the index but the actual PRICES will go absolutely out of whack because people will price them based on whatever "expectation" they have. Just look at their oil shares: same structure, they are trading at something like 100% premium. These don't qualify as ETFs. I don't even know what these are. Totally useless and fraudulent (hidden fees).
It's interesting, since their oil shares have 5? year life you would expect that the "expectation" factor would bring their correlation more in line with the 5 year CL future contracts right? Nope they don't. The correlation with 5-year futures is even lower than the (0.32) correlation with front month. In one sentence: they do not track anything. How SEC allowed this flawed product to trade is beyond me.