Special Report: In Search Of The Best Commodity ETF
Perhaps more than any other asset class, commodities have been “democratized” in recent years thanks in large part to the tremendous growth of the ETF industry. As dozens of exchange-traded products offering exposure to natural resources have popped up, investors have embraced the combination of the ETF (or ETN) wrapper with an asset class that brings both return enhancement and diversification benefits, but that has historically difficult to access.
The introduction of commodity ETPs has opened up this asset class to investors who previously would have spent significant amounts of time or money (or both) to tap into a corner of the investable universe that has delivered some truly impressive gains over the last several years. And this asset class is now available with all the benefits that come along with the exchange-traded structure, including low expenses, intraday liquidity, and the potential for enhanced tax efficiencies (a topic we cover in depth in this report).
In addition to a robust lineup of resource-specific products, there are now more than a dozen ETPs offering broad-based exposure to multiple commodity families. It’s probably no surprise that the lineup is far from identical; the available funds and notes differ in the composition of the underlying portfolios, roll methodologies, product structure, and a host of other factors.
What may seem like minor details can end up having a huge impact on the risk / return profile realized; as shown in the Facts & Figures section of our report, the performance of these products has been all over the board.
The ETFdb team of analysts assembled this report with the goal of highlighting all the aspects that should be considered when searching for the right commodity ETP, as well as giving our objective reviews of more than a dozen different products in this space. We hope you’ll find the material to be a valuable resource in your research and investing; we welcome any comments or questions on the topic you may have.
Table Of Contents
To navigate to any of these sections, simply click on the links below:
- PowerShares DB Commodity Index Tracking Fund (DBC)
- UBS E-TRACS Bloomberg CMCI ETN (UCI)
- United States Commodity Index Fund (USCI)
- iShares GSCI Commodity-Indexed Trust Fund (GSG)
- iPath S&P GSCI Total Return Index ETN (GSP)
- GS Connect S&P GSCI Enhanced Commodity TR ETN (GSC)
- GreenHaven Continuous Commodity Index Fund (GCC)
- UBS DJ-UBS Commodity Index Total Return ETN (DJCI)
- iPath Dow Jones-UBS Commodity Index TR ETN (DJP)
- PowerShares DB Commodity Long ETN (DPU)
- Rogers International Commodity ETN (RJI)
- Pure Beta S&P GSCI-Weighted ETN (SBV)
- iPath Pure Beta Broad Commodity ETN (BCM)