Commodity ETFs Rally Back to Multi-Month Highs

August 19th at 1:32pm by Paul Weisbruch, Street One Financial

Broad based commodity ETPs have rallied back like champs in the past eight trading sessions, truly reversing course from early summer weakness with some products even showing green in terms of YTD performance at this point such as GSG (iShares GSCI Commodity-Indexed Trust, Expense Ratio 0.75%), GSP (iPath S&P GSCI Total Return Index ETN, Expense Ratio 0.75%), GSC (Goldman Sachs GS Connect S&P GSCI Enhanced Commodity TR ETN, Expense Ratio 1.25%).

Other leading broad based products such as DBC (PowerShares DB Commodity Index Tracking Fund, Expense Ratio 0.93%), GCC (Greenhaven Continuous Commodity Index, Expense Ratio 0.85%) and DJP (iPath DJ-UBS Commodity Index Total Return ETN, Expense Ratio 0.75%) have also risen notably from their recent lows as precious metals including Gold, Silver, and Platinum caught a strong bid all last week while energy commodities such as Crude Oil and even Natural Gas have showed that they may have some room to run here in the near term.

Even some depressed Agricultural commodities such as Corn have rallied a bit in recent sessions, heading off a broad based Commodities buying spree. [Corn ETF Popping]

Differences in both short and longer term performance between the aforementioned funds is entirely attributable to specific fund index methodologies which govern the weightings of individual components (Precious Metals, Energy, Ags, Livestock, etc.) and dependent on a manager’s preferences for potentially over-weighting (or in the case of GCC equal weighting) certain commodity sub-sectors over others, this may ultimately govern the fund selection process conclusions.

iShares GSCI Commodity-Indexed Trust

For more information on Street One ETF research and ETF trade execution/liquidity services, contact Paul Weisbruch at pweisbruch@streetonefinancial.com.

Street One Financial is an educational/research firm utilizing the Broker Dealer services of GWM Group Inc (RLCC) a FINRA registered Broker/Dealer. All trades are executed through GWM Group (RLCC) and cleared by Fidelity (NFS)DTC number 0226. Street One Financial LLC makes available products and services offered by GWM Group Inc., a registered broker-dealer and Member Securities Investor Protection Corporation (SIPC), Investing in securities involves risks, and there is always the potential of losing money when you invest in securities.

Tickers