“While many traditional commodity ETFs weight commodities based on the liquidity of their markets or their level of production, FTGC favors less volatile commodities that don’t move in close lockstep with other commodities. Its active management allows it to avoid some of the costs of rolling over futures contracts that other ETFs can’t avoid,” notes Balchunas.
FTGC’s largest holdings currently include an almost 13% weight to beaten up silver futures, a 9.3% allocation to Brent crude futures and an 8.8% weight to high-flying coffee futures. The ETF also features multiple exposures to the same commodities including positions in two copper futures contracts and two corn futures contracts. FTGC currently has no exposure to gold. [Silver ETFs for the Daring]
First Trust Global Tactical Commodity Strategy Fund
ETF Trends editorial team contributed to this post.