ETF Chart of the Day: Commodities Tussle

While traders lament low and stagnating volumes in equity products, at least trading activity has been robust and interesting in recent sessions in both Commodities and Fixed Income markets.

Both DBC (PowerShares DB Commodity Tracking, Expense Ratio 0.93%) and GSG (iShares GSCI Commodity Indexed Trust Fund, Expense Ratio 0.75%) have seen recent outflows in the $200 million range which is not
huge, but notable.

Both funds are off recent highs considerably (DBC about 3%) inside of two months trading, and both funds are now in danger of trading at their 200 day Moving Averages.

There have been notable volume spikes in both funds recently with GSG for instance trading almost 6 million shares on Monday versus its ADV of about 369,000 shares. DBC is the largest Diversified Commodity based ETF in
the landscape, with north of $5.6 billion in assets under management, while GSG is the third largest in the category with about $1.1 billion in AUM.

DBC’s top end exposure from a commodity standpoint is Brent Crude futures (13.83%), followed by Gasoline RBOB futures (13.71%), WTI Crude futures (13.56%), Heating Oil futures (13.20%), and Gold futures (7.49%).

All of the aforementioned Energy futures are surely off their 2014 highs, but none are in or even near bearish territory.