GSG’s index target weights include WTI crude 24.5%, Brent crude 24.7%, gas oil 7.4%, heating oil 5.8%, RBOB gasoline 5.7%, natural gas 3.1%, gold 2.4% and silver 0.3%.
Supporting the commodities outlook, the China, the world’s top consumer of metals, grains and energy, is seeing its economy stabilize. On the supply side, U.S. crude oil production is faltering, which has helped support crude prices.
Moreover, the depreciating U.S. dollar has helped support demand for commodities as an alternative hard asset or a better store of wealth.
“China looks like it’s doing better because there’s stimulus coming through the pipeline,” Kevin Caron, a market strategist and portfolio manager for Stifel Nicolaus & Co., told Bloomberg. “At the same time, you got the Federal Reserve backing away from a more hawkish stance, which is allowing the dollar to soften, and that is always a good thing for commodities.”
Investors have also taken notice of the rising trend, piling in over $17 billion into exchange traded products that track commodities so far this year.
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PowerShares DB Commodity Index Tracking Fund