Commodity ETFs Are Outperforming Stocks, Bonds

Commodity exchange traded funds are enjoying their best month since 2010 and are beating traditional equities and fixed-income assets to boot.

Over the past month, the PowerShares DB Commodity Index Tracking Fund (NYSEArca: DBC) rose 7.8%, iPath Bloomberg Commodity Index Total Return ETN (NYSEArca: DJP) increased 7.4% and iShares GSCI Commodity-Indexed Trust (NYSEArca: GSG) gained 8.0%.

Both DBC and DJP are trading back above their long-term, 200-day simple moving averages while GSG is still trying to break through the resistance.

The Bloomberg Commodity Index, a measure of returns for 22 components, is at its highest since November after rising 8.1% in April, outperforming global equities and high-yield and investment-grade bonds, reports Marvin G. Perez for Bloomberg.

Leading the charge, oil experienced its biggest monthly gain in a year and gold advanced to a 15-month high.

The broad commodity ETFs also rallied on the strengthen in these two assets as the funds include heavy tilts toward energy and metals. For instance, DBC includes 9.5% gold, 11.4% heating oil, 9.8% light crude, 5.2% natural gas, 12.1% RBOB gasoline and 2.5% silver.


DJP holds gold 12.6%, Brent crude 7.8%, WTI crude 7.4%, natural gas 6.6%, silver 4.4% and unleaded gasoline 4.2%.