Problematic Commodity Exposure In One Chart

This month is a great example of why long only commodity exposure can be a bit problematic (think taking the stairs up, and the elevator down; or the Olympic High Dive). Crude Oil dropped roughly 20% in the month of July, and the bell of the ball /comeback kid of 2016, Commodities, followed suit dropping roughly 10% in July. Meanwhile, other commodity markets like Platinum, Palladium, and Cotton are all experiencing significant uptrends but aren’t captured in typical commodity-based ETFs.

The pros who invest in these commodity markets both long and short, meanwhile, did ok in July – with Managed Futures able to capture a few trends across various markets, ending up +1.03% on the month.

Elsewhere, Real Estate keeps climbing the scoreboard, most likely on the fact the Fed doesn’t plan to raise interest rates anytime soon. Interestingly, though, this comes on heels of homeownership at its lowest since 1965.

This Tiger Cub Giant Is Betting On Banks And Tech Stocks In The Recovery

D1 CapitalThe first two months of the third quarter were the best months for D1 Capital Partners' public portfolio since inception, that's according to a copy of the firm's August update, which ValueWalk has been able to review. Q2 2020 hedge fund letters, conferences and more According to the update, D1's public portfolio returned 20.1% gross Read More

Finally, World Stocks and U.S. Stocks look almost unfazed after the Brexit volatility.


July 2016 Asset Class Scoreboard Chart

(Disclaimer: past performance is not necessarily indicative of future results.)
Source: All ETF performance data from
Sources: Managed Futures = Newedge CTA Index, Cash = 13 week T-Bill rate,
Bonds = Vanguard Total Bond Market ETF (BND),
Hedge Funds= IQ Hedge Multi-Strategy (QAI)
Commodities = iShares GSCI ETF (GSG);
Real Estate = iShares DJ Real Estate ETF (IYR);
World Stocks = iShares MSCI ACWI ex US Index Fund ETF (ACWX);
US Stocks = SPDR S&P 500 ETF (SPY)