Close Close
Sign In
Newsletters
Popular Financial Topics Discover relevant content from across the suite of ALM legal publications From the Industry More content from ThinkAdvisor and select sponsors Investment Advisor Issue Gallery Read digital editions of Investment Advisor Magazine Tax Facts Get clear, current, and reliable answers to pressing tax questions
Luminaries Awards
Podcast Center Video Center Webcasts Resource Center Events
About ThinkAdvisor Contact Us Advertise With Us Asset & Logo Licensing Sitemap Terms of Service Privacy Policy Copyright © 2024 ALM Global, LLC. All Rights Reserved.
ThinkAdvisor

Portfolio > Alternative Investments > Commodities

Commodities Leave Sour Taste

By Ronald Delegge

X
Your article was successfully shared with the contacts you provided.

In terms of raw performance, no asset class has been more miserable than commodities.

Over the past five years, the GreenHaven Continuous Commodities Fund (GCC) has delivered an 8% loss, while the total U.S. stock market (VTI) has jumped 109% and the total U.S. bond market (BND) has gained 20.04%, not including income.

GCC is a broad proxy of commodities prices and contains a basket of 17 different commodities futures contracts that are equally weighted. Among GCC’s holdings are cotton, coffee, crude oil, precious metals and natural gas.

Other commodity linked ETFs like the iShares S&P GSCI Commodity Indexed Trust (GSG) have been hit harder because of larger market exposure to the lagging energy sector. Since 2009, GSG has collapsed 21% in value.

Investing in commodity linked equity sectors has been a far better way to play commodities without buying the physical goods.

The Materials Sector SPDR ETF (XLB) has gained 65% over the past five years while the Energy Sector SPDR ETF (XLE) has risen 54%.

NOT FOR REPRINT

© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.