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Commodities used to be owned by institutional investors and day traders and that was it. But in recent years, thanks mainly to ETF’s, they have became so popular that they have almost became an asset class. In fact, many do consider commodities as a separate asset class. The result of this of course has been that almost every investor, from the biggest to the smallest now has commodities in his portfolio, usually through ETF’s. Unfortunately, 2010 has been a very difficult year for commodity ETF’s.
Apart from a few exception, two simple strategies have worked in commodities so far this year:
1-Long Gold
2-Short everything else
There are a few exceptions, but not too many. To get an idea, take a look at the top 100 commodity ETF’s so far this year… just to make it even more clear, I’ve made it easy to see any funds that are “Short” or “Gold related”.
Ticker Name Market Cap Price Return YTD 1Y Return Fees
AGA PowerShares DB Agriculture Double Short ETN $10,334,000.00 $51.67 52.75 46.962 0.75
BOM PowerShares DB Base Metals Double Short ETN $9,513,451.00 $21.38 37.99 -33.915 0.75
ADZ PowerShares DB Agriculture Short ETN $3,832,000.00 $38.32 24.34 23.863 0.75
DGP PowerShares DB Gold Double Long ETN $466,704,000.00 $32.58 24.02 56.89 0.75
UGL ProShares Ultra Gold $202,050,800.00 $54.13 21.82 54.631 0.95
BOS PowerShares DB Base Metals Short ETN $8,925,000.00 $25.50 21.02 -14.461 0.75
GRN iPath Global Carbon ETN $3,023,040.00 $29.85 20.46 12.698 0.75
DEE PowerShares DB Commodity Double Short ETN $11,743,800.00 $58.80 18.99 14.577 0.75
CMD ProShares UltraShort DJ-UBS Commodity $5,855,734.00 $16.64 17.00 -7.737 0.95
DTO PowerShares DB Crude Oil Double Short ETN $48,269,000.00 $74.91 12.72 13.126 0.75
IAU iShares COMEX Gold Trust $3,333,771,000.00 $119.70 11.88 28.114 0.4
SGOL ETFS Gold Trust $541,547,200.00 $121.95 11.86 N/A 0.39
GLD SPDR Gold Trust $51,235,020,000.00 $119.60 11.84 28.079 0.4
DGL PowerShares DB Gold Fund $208,796,900.00 $43.64 11.75 27.117 0.75
UBG E-TRACS UBS Bloomberg CMCI Gold ETN $5,324,000.00 $33.28 11.65 25.849 0.3
DDP PowerShares DB Commodity Short ETN $6,292,500.00 $41.65 10.82 7.841 0.75
DBP PowerShares DB Precious Metals Fund $273,901,700.00 $41.57 10.75 24.612 0.75
JJP iPath Dow Jones-UBS Precious Metals Subindex Total Return ETN $9,514,304.00 $63.26 10.38 24.05 0.75
GDX Market Vectors - Gold Miners ETF $7,147,983,000.00 $49.90 9.91 24.414 0.54
SZO PowerShares DB Crude Oil Short ETN $18,116,000.00 $51.76 9.67 9.667 0.75
SCO ProShares UltraShort DJ-UBS Crude Oil $39,299,710.00 $14.93 9.45 -5.383 0.95
DNO United States Short Oil Fund LP $23,890,000.00 $47.90 9.36 N/A 0.96
GDXJ Market Vectors Junior Gold Miners ETF $1,205,900,000.00 $27.50 8.97 N/A 0.59
SLV iShares Silver Trust $5,413,018,000.00 $17.86 7.93 17.978 0.5
DBS PowerShares DB Silver Fund $64,885,090.00 $32.56 7.90 17.723 0.75
AGQ ProShares Ultra Silver $176,842,800.00 $60.70 7.77 15.867 0.95
SIVR ETFS Silver Trust $158,601,900.00 $18.18 7.77 N/A 0.3
PXE PowerShares Dynamic Energy Exploration & Production Portfolio $54,656,000.00 $17.92 7.30 16.325 0.63
USV E-TRACS UBS Bloomberg CMCI Silver ETN $4,164,816.00 $26.03 6.80 21.127 0.4
PSAU PowerShares Global Gold and Precious Metals Portfolio $46,184,000.00 $40.17 5.94 25.633 0.75
FXZ First Trust Materials AlphaDEX Fund $126,873,000.00 $19.84 5.36 31.764 0.7
JJN iPath Dow Jones-UBS Nickel Subindex Total Return ETN $18,151,490.00 $29.62 4.04 20.854 0.75
JO iPath Dow Jones-UBS Coffee Subindex Total Return ETN $13,805,950.00 $41.18 3.14 0.06 0.75
DDG ProShares Short Oil & Gas $11,721,560.00 $52.42 2.67 -6.232 0.95
RKH Regional Bank HOLDRs Trust $157,998,800.00 $77.09 2.65 15.646 0
DUG ProShares UltraShort Oil & Gas $127,287,800.00 $64.82 0.80 -16.837 0.95
COW iPath Dow Jones-UBS Livestock Subindex Total Return ETN $83,927,650.00 $28.62 0.28 0.427 0.75
PTD E-TRACS UBS Short Platinum ETN $5,136,000.00 $32.10 (0.12) -7.187 0.65
JJT iPath Dow Jones-UBS Tin Subindex Total Return ETN $7,742,744.00 $39.79 (0.36) 9.543 0.75
FCG First Trust ISE-Revere Natural Gas Index Fund $409,897,600.00 $17.49 (0.40) 15.54 0.6
WOOD iShares S&P Global Timber & Forestry Index Fund $56,658,030.00 $40.14 (0.50) 28.161 0.48
IEO iShares Dow Jones US Oil & Gas Exploration & Production Index Fund $370,516,500.00 $53.62 (0.58) 13.116 0.48
PTM E-TRACS UBS Long Platinum ETN $81,659,100.00 $18.58 (0.60) 18.459 0.65
PYZ PowerShares Dynamic Basic Materials Sector Portfolio $43,979,700.00 $28.19 (0.83) 25.188 0.65
XME SPDR S&P Metals & Mining ETF $1,043,026,000.00 $50.98 (1.45) 19.184 0.35
ELG SPDR Dow Jones Large Cap Growth ETF $174,769,000.00 $48.54 (1.78) 19.531 0.2
FIW First Trust ISE Water Index Fund $40,960,740.00 $18.41 (1.83) 10.364 0.6
PSP PowerShares Global Listed Private Equity Portfolio $219,112,200.00 $8.87 (2.44) 20.821 0.7
VOX Vanguard Telecommunication Services ETF $204,062,900.00 $54.91 (2.71) 13.485 0.25
PUW PowerShares WilderHill Progressive Energy Portfolio $54,549,610.00 $23.16 (2.72) 15.482 0.7
IYM iShares Dow Jones US Basic Materials Sector Index Fund $673,612,000.00 $57.63 (3.06) 21.625 0.47
VAW Vanguard Materials ETF $442,711,000.00 $64.21 (4.53) 15.482 0.25
FXN First Trust Energy AlphaDEX Fund $43,862,810.00 $15.90 (4.79) 10.346 0.7
PGM iPath Dow Jones-UBS Platinum Subindex Total Return ETN $106,492,000.00 $37.13 (4.93) 18.884 0.75
VDE Vanguard Energy ETF $1,107,253,000.00 $78.77 (5.18) 2.256 0.25
XES SPDR S&P Oil & Gas Equipment & Services ETF $265,162,000.00 $26.72 (5.47) 6.268 0.35
IYE iShares Dow Jones US Energy Sector Index Fund $636,608,000.00 $31.08 (5.83) -0.97 0.47
SLX Market Vectors - Steel Index Fund $309,096,000.00 $57.88 (6.05) 20.882 0.55
ERY Direxion Daily Energy Bear 3X Shares $31,903,180.00 $10.70 (6.12) -37.3 0.95
GCC GreenHaven Continous Commodity Index Fund $238,329,800.00 $24.91 (6.42) 0.081 0.85
PKN PowerShares Global Nuclear Energy Portfolio $35,500,000.00 $17.73 (6.79) -3.195 0.75
USL United States 12 Month Oil Fund LP $154,324,400.00 $37.53 (7.07) -4.689 0.6
IEZ iShares Dow Jones US Oil Equipment & Services Index Fund $353,115,000.00 $39.50 (7.27) 3.225 0.47
UGA United States Gasoline Fund LP $78,269,000.00 $33.93 (7.71) -3.515 0.6
UBN E-TRACS UBS Bloomberg CMCI Energy ETN $4,075,812.00 $14.28 (7.71) -11.528 0.65
SMN ProShares UltraShort Basic Materials $141,050,200.00 $39.55 (7.92) -50.362 0.95
PIO PowerShares Global Water Portfolio $308,280,000.00 $16.69 (8.76) 9.786 0.75
UHN United States Heating Oil Fund LP $10,120,000.00 $25.34 (8.77) -7.478 0.69
CGW Claymore S&P Global Water Index ETF/USA $206,004,400.00 $16.99 (8.80) 6.501 0.7
PXJ PowerShares Dynamic Oil & Gas Services Portfolio $139,913,000.00 $15.30 (9.38) -3.042 0.61
DBE PowerShares DB Energy Fund $334,041,000.00 $23.76 (9.58) -7.428 0.75
RJZ ELEMENTS Linked to the Rogers International Commodity Index - Metals Tot Return $47,827,500.00 $9.10 (9.60) 13.291 0.75
RJN ELEMENTS Linked to the Rogers International Commodity Index - Energy To Return $46,445,400.00 $5.72 (10.08) -11.198 0.75
UYM ProShares Ultra Basic Materials $336,892,500.00 $28.54 (10.12) 31.767 0.95
IXC iShares S&P Global Energy Sector Index Fund $988,861,600.00 $31.86 (10.17) -4.142 0.48
MXI iShares S&P Global Materials Sector Index Fund $757,066,500.00 $55.87 (10.40) 9.525 0.48
OLO PowerShares DB Crude Oil Long ETN $15,691,130.00 $12.09 (10.68) -6.505 0.75
DJP iPath Dow Jones-UBS Commodity Index Total Return ETN/United States $2,046,754,000.00 $38.17 (10.77) -4.989 0.75
DBO PowerShares DB Oil Fund $512,307,100.00 $24.52 (10.81) -6.679 0.75
DBC PowerShares DB Commodity Index Tracking Fund $4,402,753,000.00 $22.01 (10.85) -9.26 0.85
KOL Market Vectors - Coal ETF $269,708,500.00 $32.24 (10.88) 21.638 0.63
DBA PowerShares DB Agriculture Fund $1,858,741,000.00 $23.79 (10.93) -14.89 0.85
DGZ PowerShares DB Gold Short ETN $17,820,000.00 $17.79 (11.32) -25.095 0.75
DPU PowerShares DB Commodity Long ETN $5,437,500.00 $14.50 (11.48) -9.488 0.75
PZD PowerShares Cleantech Portfolio $139,187,500.00 $22.12 (11.61) -0.692 0.67
PKOL PowerShares Global Coal Portfolio $14,239,500.00 $25.88 (11.65) 16.216 0.75
DJCI E-TRACS UBS AG Dow Jones-UBS Commodity Index Total Return ETN $12,510,430.00 $23.53 (11.67) N/A 0.5
NIB iPath Dow Jones-UBS Cocoa Subindex Total Return ETN $8,702,000.00 $43.51 (11.93) -1.892 0.75
MOO Market Vectors - Agribusiness ETF $1,493,821,000.00 $38.23 (12.13) 1.198 0.59
GSG iShares S&P GSCI Commodity Indexed Trust $1,504,951,000.00 $28.18 (12.48) -13.05 0.75
DBN WisdomTree International Basic Materials Sector Fund $38,442,790.00 $24.76 (12.77) 8.538 0.58
USO United States Oil Fund LP $2,237,752,000.00 $34.33 (12.86) -13.735 0.45
JJE iPath Dow Jones-UBS Energy Subindex Total Return ETN $23,786,400.00 $23.32 (12.89) -18.711 0.75
CRBQ Jefferies TR/J CRB Global Commodity Equity Index Fund $69,615,500.00 $37.08 (13.11) N/A 0.65
RJA ELEMENTS Linked to the Rogers International Commodity Index - Agri Tot Return $265,802,000.00 $6.93 (13.60) -13.075 0.75
DIG ProShares Ultra Oil & Gas $418,779,000.00 $29.56 (13.65) -9.254 0.95
JJC iPath Dow Jones-UBS Copper Subindex Total Return ETN $95,201,260.00 $39.98 (13.85) 15.951 0.75
OIL iPath Goldman Sachs Crude Oil Total Return Index ETN $630,684,900.00 $22.33 (13.91) -14.929 0.75
NLR Market Vectors - Nuclear Energy ETF $162,525,000.00 $19.62 (13.95) -17.827 0.63
QCLN First Trust NASDAQ Clean Edge Green Energy Index Fund $33,696,030.00 $13.87 (14.50) -9.484 0.6
As you can see, it’s a very recurring theme isn’t it? Just to make things a bit easier, here are top commodity ETF’s that do not follow the two strategies we just mentionned:
Ticker Name Market Cap Price Return YTD 1Y Return Fees
GRN iPath Global Carbon ETN $3,023,040.00 $29.85 20.46 12.698 0.75
DBP PowerShares DB Precious Metals Fund $273,901,700.00 $41.57 10.75 24.612 0.75
JJP iPath Dow Jones-UBS Precious Metals Subindex Total Return ETN $9,514,304.00 $63.26 10.38 24.05 0.75
SLV iShares Silver Trust $5,413,018,000.00 $17.86 7.93 17.978 0.5
DBS PowerShares DB Silver Fund $64,885,090.00 $32.56 7.90 17.723 0.75
AGQ ProShares Ultra Silver $176,842,800.00 $60.70 7.77 15.867 0.95
SIVR ETFS Silver Trust $158,601,900.00 $18.18 7.77 #N/A N/A 0.3
PXE PowerShares Dynamic Energy Exploration & Production Portfolio $54,656,000.00 $17.92 7.30 16.325 0.63
USV E-TRACS UBS Bloomberg CMCI Silver ETN $4,164,816.00 $26.03 6.80 21.127 0.4
FXZ First Trust Materials AlphaDEX Fund $126,873,000.00 $19.84 5.36 31.764 0.7
JJN iPath Dow Jones-UBS Nickel Subindex Total Return ETN $18,151,490.00 $29.62 4.04 20.854 0.75
JO iPath Dow Jones-UBS Coffee Subindex Total Return ETN $13,805,950.00 $41.18 3.14 0.06 0.75
So what explains these strange movements? First off, Gold has been doing well because of all of the uncertainty in the world. Investors all around the world have been buying gold especially because of all of the uncertainty in the world economy. Events like yesterday’s downgrade of Greece debt to Junk status is nothing to help reassure those who are worried. Just take a look at this chart of Gold for 2010.
Last year, many had expected that the economic recovery would be much higher and had pushed commodities such as Oil in anticipation. Obviously, with things being much worse now, those commodities have looked overvalued. Demand has simply not been up to par. Even a strong performance by China has not been enough to compensate for all of the European problems.
Are you surprised by the overall poor performance of commodity ETF’s so far this year?
Similar Posts:
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- It’s not all about Gold… Silver is surging too
- Will commodity ETF’s exist a year from now?
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Little correction: I don’t think iPath Goldtman Sachs Crude Oil Total Return Index ETN is related to gold.
But to answer your question, I am quite surprised for the poor performance of commodity etf’s! And remember, what goes down must come up, isn’t? it has been a tough half year, but i truly believe it will recover in the next half year!
@OneDay – Thanks for pointing that out, it was my error.
And yes, long term, I think commodities will rebound, no doubt, but how long it will take depends on so many factors, the European crisis perhaps being at the top of the list.
We’ll also have to check closely demand in USA because it’s the largest energy consumer in terms of total use!!
True but China is doing its best to keep up:)