The Cringeworthy Long Only Commodities Table – Futures Vs ETFs

The Cringeworthy Long Only Commodities Table – Futures Vs ETFs

Via Attain Capital

Here’s our monthly look at:

1. How the numerous commodity ETFs which have sprung onto the scene the past few years are tracking a simple strategy of just buying the December futures market of that commodity, under the theory that the ETF will have to roll their positions periodically throughout the year, and in doing so take on costs the simple strategy does not have.

Option Trading and the Future of Option Alpha with Option Alpha’s Kirk Du Plessis

Arena Investors Chilton Capital Management Schonfeld Strategic Advisors Robert Atchinson Phillip Gross favorite hedge fundsValueWalk's Raul Panganiban interviews Kirk Du Plessis, Founder and CEO of Option Alpha, and discuss Option Alpha and his general approach to investing. Q1 2021 hedge fund letters, conferences and more The following is a computer generated transcript and may contain some errors. Interview with Option Alpha's Kirk Du Plessis

2. How the passive investment strategy of being long commodities (either via futures or ETFs) compare to an active strategy going both long and short commodity markets via a professional commodity trading advisor (as tracked by the BarclayHedge Ag Trader Index).

(Performance as of 7/22/2015)

Copy of Commodity ETF Over/Under Performance 2015

Commodity Futures ETF Difference
Crude Oil $CL_F
Brent Oil $NBZ_F
Natural Gas $NG_F
-0.84% font>
Cocoa $CC_F
-2.24% font>
Coffee $KC_F
-3.53% font>
Corn $ZC_F
-5.18% font>
Cotton $CT_F
Live Cattle $LE_F
-0.31% font>
Lean Hogs $LH_F
-9.44% font>
Sugar $SB_F
Soybeans $ZS_F
-3.52% font>
Wheat $ZW_F
-4.06% font>
Average strong> -8.87% strong> -11.14% strong> -2.27% strong> font>
Average without Hogs strong> -10.02% strong> -8.40% strong> -1.62% strong> font>
Commodity Index $DBC -11.06% font>
Long/Short Ag Trader CTAs 1.02%

(Disclaimer: Past performance is not necessarily indicative of future results)
(Disclaimer: Sugar uses the October contract, Soybeans the November contract.)
Long/Short Ag Trader CTA = Barclayhedge Ag Traders Index


No posts to display