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This ETN offers exposure to coffee through futures contracts. Coffee is one of the world's most popular crops; 2.25 billion cups are consumed daily around the globe, enough to give one cup to one third of the world?s population. Given the narrow focus of this product, CAFE probably doesn't make much sense as a component of a long-term buy-and-hold portfolio; it is designed for use as a tactical tool to deliver access towards a very specific corner of the commodity market. Investors seeking more broadly-based exposure to agricultural commodities have a number of options in the Agricultural Commodities ETFdb Category, including DIRT (an ETN) and DBA (an ETF). Several nuances make CAFE unique among ag ETPs. First, it should be noted that CAFE is an ETN, meaning that investors are exposed to the credit risk of the issuing institution but will be able to avoid tracking error (which can be a significant issue in many commodity ETPs). The ETN structure may also have some favorable tax features relative to ETFs, especially for investors who intend to establish a position for more than a year. Also noteworthy is the roll frequency of the underlying index; CAFE offers exposure to futures contracts, and as such may not correspond to movements in spot prices for the underlying resources. Unlike many commodity ETPs that roll holdings on a monthly basis, CAFE does not roll exposure on a predetermined schedule; the roll timing is based on a proprietary methodology designed to reduce the impact of contango or backwardation on returns. This feature may make CAFE more appealing to investors looking to establish a position in coffee over the long term. Those looking for a short-term trading vehicle probably will be better served by a fund like JO that focuses on shorter maturity futures contracts.
The adjacent table gives investors an individual Realtime Rating for CAFE on several different metrics, including liquidity, expenses, performance, volatility, dividend, concentration of holdings in addition to an overall rating. The "A+ Metric Rated ETF" field, available to ETFdb Pro members, shows the ETF in the Agricultural Commodities with the highest Metric Realtime Rating for each individual field. To view all of this data, sign up for a free 14-day trial for ETFdb Pro. To view information on how the ETFdb Realtime Ratings work, click here.View the Category Report
The following tables and charts contain in-depth metrics for this ETF and compare it to similar peer ETFs within its ETFdb.com Category.
This ETF is not currently available for commission free trading on any platforms.
There are 3 other ETFs in the Agricultural Commodities ETFdb.com Category that are also eligible for commission free trading:
This section shows how this ETF has performed relative to its peer group ETFdb.com Category.
This section compares the fund flows of this ETF to peers in the same ETFdb.com Category.
The following charts can be customized to display historical performance in a number of different formats, including line charts, bar charts, and candlesticks. Time periods can be adjusted to increase or decrease the period shown, ranging from five minutes to several months.
The following chart also includes the option to compare the performance of CAFE relative to other ETFs and benchmarks or to include indicators such as Bollinger Bands, relative strength, and moving averages.
This section shows how the volatility of this ETF compares to the peer group ETFdb.com Category.
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